The odds of an interest rate rise this week are better than putting your shirt on Melbourne Cup favourite Master O'Reilly.
Economists say a rate rise on Wednesday after Tuesday's Reserve Bank of Australia (RBA) board meeting now seems a foregone conclusion as further data shows the strength of the economy needs to be reined in.
A private survey indicated that it may be better for homebuyers to budget for more than one rate increase with inflation zipping along, while another showed hiring intentions had returned to a canter from a trot.
A key business group also estimated that a rate rise will put a $1.8 billion dent in an economy that is otherwise going "gang-busters".
Prime Minister John Howard, while not willing to wager on the RBA's decision, continues to use the risk of a rate rise as a platform not to change governments because of the challenges facing the economy.
"My argument, to the Australian people, will be we are entering a slightly more challenging phase of economic management," Mr Howard told journalists in Gosford, NSW.
"And that is not the time to substitute a very experienced, successful government when it comes to economic management with a group of people who will be very inexperienced."
Mr Howard conceded for the first time on Sunday that inflation pressures are unavoidable because of the strength of the economy, high oil prices and the drought.
Opposition Leader Kevin Rudd accused Mr Howard of again refusing to take responsibility for rising inflation and interest rates and that he had sold people a "big interest rate con" at the last election.
"What I see increasingly though is Mr Howard quite arrogantly pushing aside all responsibility for the problems of inflation in the Australian economy," Mr Rudd told journalists in Sydney.
"He also said there would be no problem of policy miscalculation or policy failure, whereas three years ago he told everyone that he would keep interest rates at record lows."
A rate rise on Wednesday would mark the sixth increase since the 2004 election.
Labor's treasury spokesman Wayne Swan calculates home buyers in NSW are already paying an extra $209 per month or $62,594 over the life of the loan since the last election.
However, a new Galaxy poll published by News Ltd has found that only 12 per cent of voters will blame Mr Howard if rates go up again.
The TD Securities-Melbourne Institute monthly inflation gauge showed an annual rate of 3.3 per cent, the highest annual increase since March, and above the RBA's two to three per cent inflation target.
"There is a risk that one more interest rate increase will not be enough to quell inflationary pressure (and) more interest rate increases may be required in the months ahead," TD Securities senior strategist Joshua Williamson said.
Australian Chamber of Commerce and Industry (ACCI) chief executive Peter Hendy says ACCI's latest business survey showed the economy is going "gang-busters", but any rate rise could cost the economy $1.8 billion.
"But the fact is that inflation is a beast that needs to be kept under control and if the Reserve Bank coordinates a balanced decision that interest rates need to rise to keep inflation under control, we would support that," Mr Hendy said.
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.