In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.

With September quarter inflation data showing trimmed mean rising by 1 per cent, considerably higher than the Reserve Bank of Australia's forecast, a near-term rate cut is unlikely, but that doesn't mean the book should be closed on cuts.

They also explore:

• The US Federal Reserve making the decision to cut rates despite having limited data due to the government shutdown.
• Why the AI boom is based on solid foundations even as it shows signs of frothiness.
• The argument for a rate cut to back the labour market.