Chances of an interest rate cut by Christmas have all but disappeared after inflation jumped to its highest level in more than a year with signs that price pressures are broadening across the entire economy.

In a blow to the Albanese government’s claims to have inflation under control, the Australian Bureau of Statistics revealed on Wednesday that inflation jumped by 1.3 per cent in the September quarter, taking the annual rate to 3.2 per cent.

RBA governor Michele Bullock said a difference of more than 0.3 percentage points between the bank’s forecast and the data on Wednesday would be a “material miss”. Credit: Dominic Lorrimer

More troubling for the Reserve Bank, the closely watched measure of underlying inflation – which excludes unusually large movements in prices – lifted by a

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