Inflation jumped to 6.1 per cent in June, up from 5.1 per cent as construction, fuel, and grocery costs continue to climb.
This marks the fastest annual pace since the end of 1990, and the largest quarterly rise in inflation since the introduction of the GST, in 2000.
Consumer prices grew by 1.8 per cent over the June quarter, from 2.1 per cent in the March quarter, according to the ABS.
Furniture prices saw the biggest rise during the quarter, rising by 7 per cent. Home building prices rose 5.6 per cent in the quarter, with petrol up 4.2 per cent.
“This is not a surprising outcome, but a confronting outcome,” Treasurer Jim Chalmers says.
“It is not news to millions of Australians who feel its inflation challenge, every time they go to the supermarket and every time the bills arrive.
“This inflation outcome today mirrors the lived experience of Australians who are doing it tough right now.”
The RBA is expected to hike the cash rate by half a percentage point next Tuesday, to 1.85 per cent.
