A Melbourne Cup Day interest rate rise is looking more likely after official inflation data came in slightly hotter-than-expected in the most recent quarter. The Consumer Price Index jumped by 1.2 percent in the September quarter making 5.4 percent over the year in the latest sign that inflation remains stubborn and risks rebounding. Analysis from ABC's Peter Ryan.

For more I'm joined now by the ABC's senior business correspondent

Reporter: Peter Ryan, Senior Business Correspondent

Featured: Michele Bullock, Reserve Bank governor

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