The Albanese government has been blamed for causing inflation to rise above the central bank's target band , pushing back all hopes of a near-term rate cut.

It comes after Treasurer Jim Chalmers said in June 2025 that inflation was “down substantially” and in a “sustained way”.

However, inflation rose 1.1 per cent from 2.1 per cent in the June 2025 quarter to 3.2 per cent in the September 2025 quarter—outside the 2-3 per cent target band.

Core, or trimmed-mean, inflation rose 1.0 per cent in the quarter to be 3.0 per cent annually, also exceeding expectations.

Economists have said the results effectively rule out a Melbourne Cup Day rate cut, with investors pricing the chance at less than 10 per cent.

Mr Chalmers attempted to downplay the fresh jump in consumer prices on Wednesday

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