Banks led the way, with deposit and loan costs jumping 9.5pc in the June quarter, while automotive fuel cost 8.7pc more.

But fruit and vegetable prices dropped 7.4pc, and 6.5pc, respectively, the Australian Bureau of Statistics said today.

Overall, consumer price increases accelerated in the June quarter, with the CPI rising 1.5pc over the previous three months, to be 4.5pc higher than a year earlier.

Economists had been tipping gains of 1.3pc and 4.3pc, respectively, according to Bloomberg data.

A string of weaker economic figures in recent weeks had raised hopes that interest rates at 12-year highs had done enough to cool demand and contain inflation.

Some economists had also begun tipping a rate cut by the year's end, while markets had been pricing in the prospect that rates might be lower this time next year.

Today's CPI data and complementary figures released by the Reserve Bank suggest those rate cut hopes may be premature.

ICAP senior economist Matthew Johnson said the numbers came in higher than expected.

"The core measures, although taking into account the high fuel price, are probably a bit above what the RBA was anticipating," Mr Johnson said.

"So the RBA will have to revise up their inflation track. It defers a rate cut a little longer, until next year.

"But I don't think the RBA will be raising rates any time in the future."

The springboard for today's CPI jump included banking and housing, which accounted for about a third of the gain.

Even the RBA's preferred inflation gauges, which strip away the largest price movements, increased to be well above its target range of 2-3pc. On average, the twin measures came in at 4.4pc.

The Australian dollar traded at about 97.15 US cents prior to the release of data by the ABS and the RBA, and immediately jumped to 97.37 US cents before retreating to trade recently at 97 US cents.