The Reserve Bank is under increased pressure to lift interest rates

The Reserve Bank is under increased pressure to lift interest rates after Australia's annual inflation rate climbed to its highest level in two decades, fuelled by rising petrol prices and housing costs.

Australia records the largest jump in inflation in more than 20 years. Source: Xinhua News Agency via Getty

 

Not since the introduction of the Goods and Services Tax by the Howard Government in June 2000 has Australia's inflation rate jumped so markedly.

 

Then, prices increased annually by six per cent.

 

But the past year hasn't been too far behind in terms of dramatic hikes, 5.1 per cent up from 3.5 per cent previously.

 

It's a blow to the government in the middle of an election campaign.

 

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