Australia’s inflation has jumped sharply, rattling markets just one month out from Black Friday shopping, with the Australian dollar surging on the news.

The Australian Bureau of Statistics reported that the Reserve Bank’s preferred measure of core inflation rose 1% in the September quarter, up from 0.6% in Q2.

Annual core inflation now sits at 3%, above expectations of 2.7%.

Headline inflation climbed to 1.3% for the quarter and 3.2% year-on-year.

The hotter-than-expected figures have dashed hopes of an imminent Reserve Bank rate cut, with Governor Michele Bullock (pictured below) indicating that the central bank remains data-dependent on its next decision.

Money markets now see just a 4% chance of a rate cut at the RBA’s Melbourne Cup day meeting next week, down sharply from previou

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