Another hot inflation print on Wednesday prompted traders to bid up bond yields and ditch equities as economists mulled the growing risk that the Reserve Bank of Australia may need to lift rates further to pull inflation down to target.

The consumer price indicator rose to 3.6 per cent in April from 3.5 per cent in March – its highest level so far this year – overshooting expectations for inflation to cool to 3.4 per cent and above the RBA’s 2 per cent to 3 per cent target.