The Reserve Bank of Australia is poised to make its next rate-rise decision, with all financial institutions agreeing that a rate hike is all but inevitable.
The big four banks and financial markets have priced in a 80 to 90 per cent probability of a 25 basis point increase, pushing the cash rate from 4.35 per cent to 4.6 per cent — its highest level since 2011.
The RBA is expected to see inflation risks materialising faster and higher than before forecast, demanding another rate hike.
The prolonged conflict in the Middle East has pushed Brent crude oil prices to their highest level in months.
The latest figures show headline inflation is 3.5 per cent, while the trimmed mean sits at 3.6 — well above the banks' 2 to 3 per cent target.
CBA notes that if Tuesday's data shows a quarterly trimmed mean inflation rise of 1 per cent or more, a second rate hike in November will likely be triggered.
The average home loan in Australia now sits at $731,000, ranging from an average of $516,000 in Tasmania to $842,000 in NSW, according to ABS and Canstar data.
The average NSW borrower will pay an additional $138 per month, or $1,656 per year, while the average first home buyer will pay an additional $100 per month or $1,200 per year.
The RBA will announce its decision at 2.30pm on Tuesday, with Bullock holding a live media conference at 3.30pm.