Australia is likely to raise its economic growth targets on the back of higher employment numbers during its mid-year budget assessment in December.

This is based on the Australian Financial Review report quoting the remarks made by Treasurer Mr. Wayne Swan to his colleagues in Parliament on Tuesday.

Mr. Swan more importantly raised the alarm on the adverse impact of the Australian dollar's gains against the government's tax revenues.

In spite the inflationary and interest rates pressure, the country is seen to post a 3.3 percent growth this year, National Australia Bank's group chief economist Mr. Alan Oster said in an email to the International Business Times-Sydney.

Australia's producer price index (PPI) at the final stage of production rising 1.3 percent in the September quarter, for an annual rise of 2.2 percent, the Australian Bureau of Statistics said can, however, set some inflationary pressure to the economy.

Inflation triggers

Mr. Oster said the PPI, "basically raises risk to official inflation data set to be published today.

He has estimated core inflation to be within the range of a 0.7 percent increase for an adjustment of 2.5 percent.

Mr. Oster explained that this would be indicative of a pressing scenario for the Reserve Bank line in its November meeting.

Analysts are forecasting local interest rates to move upwards by a quarter basis points from the current 4.5 percent to ease an impending rise in domestic consumer prices of goods.