A day after Treasurer Jim Chalmers handed down his first budget framed by rising cost of living, the outlook for the economy was rocked by 32-year-high inflation, driving bets the Reserve Bank will push interest rates even higher starting with a seventh consecutive rise on Melbourne Cup day next week.

Financial markets are fully priced for a 0.25 percentage point lift in the cash rate on November 1, taking it to 2.85 per cent, and have ramped up bets the central bank could go higher.