Traders are increasingly confident that the Reserve Bank will be forced to raise interest rates to bring inflation under control, particularly if minimum wages are hiked in a decision due to be handed down by the industrial relations tribunal on Monday.

Bond yields in the United States climbed overnight amid mounting international fears that inflation wasn’t slowing fast enough, and money markets in Australia now suggest there is a 27 per cent chance of the RBA lifting the cash rate to 4.6 per cent by September. That is up from a 20 per cent probability on Wednesday after data showed Australian inflation accelerated for a second month.