The latest measure of inflation adds to the case for an interest rate rise when the Reserve Bank of Australia (RBA) board meets tomorrow, economists say.
The TD Securities-Melbourne Institute Monthly Inflation gauge increased 0.3 per cent in October after a rise the month before.
In the 12 months to October, inflation rose by 3.3 per cent, which is the highest growth rate since March.
TD Securities senior strategist Joshua Williamson says the figure is above the RBA's comfort range of between 2 and 3 per cent
"At the end of the day it really means that a rate rise in November is pretty much a fait accompli," he said.
The RBA board will meet tomorrow and will announce its decision on Wednesday.
Most economists predict it will lift the cash rate by 0.25 per cent to 6.75 per cent.
The Australian Prime Minister John Howard is bracing himself for the probable interest rate rise on Wednesday. Experts are saying that a rise is almost certain and that as many as three could occur within the next three months. Interest rates have never risen so close to a federal election (this year's election on November 24) but the Prime Minister says that some interest rate rise is unavoidable in a good economy.

"Now is not the time to replace an experienced government on economic issues with an inexperienced government," Howard warned today. Labor leader Kevin Rudd recalls the Prime Minister's promise at the 2004 election to keep interest rates low - labelled the 'big interest rate con' by the opposition leader.

Treasurer Peter Costello reaffirms the Coalition's policy on the workplace relations laws, saying that a reversal of the laws by a Labor government would push up inflation and interest rates.