The market reaction to the unexpected jump in inflation in May, to a six-month high of 4 per cent, was to price in a one-in-three chance of the Reserve Bank board lifting the 4.35 per cent cash rate at its next monthly meeting in August.

Still to come is the June quarter consumer price index, which is the central bank’s preferred measure of inflationary pressure. But the hotter-than-expected monthly inflation reading continues the flow of data suggesting the Reserve Bank, with a cash rate still low by international standards, has still not done enough to tame Australia’s sticky and above-target inflation.