Australian Inflation Tops Forecasts, Prompting Bets on Faster Rate Hikes

Australian inflation rose 1.2% in Q3, exceeding forecasts and raising odds of a November rate hike.

Core inflation measures like trimmed mean also topped forecasts, showing broad inflation pressures.

Two major banks now expect a November rate hike, seeing cash rate peaking around 4.5% in 2023.

Biggest contributors to inflation were fuel, rents, electricity. Grocery inflation slowed in Q3.

RBA governor said bank won't hesitate to hike further if inflation outlook worsens, will update forecasts in November.