Australian Inflation hits 21-year high

Australia has recorded the highest rate of inflation in more than 20 years, with consumers paying more for everything. According to data released by the Australian Bureau of Statistics (ABS) on Wednesday, the consumer price index rose 1.8 per cent in the June quarter and 6.1 per cent in the past 12 months.

This is the highest figure since 2001 and the second-highest quarterly increase since the introduction of the Goods and Services Tax (GST) in 2000, Xinhua news agency reported.

Automotive fuel prices rose 32.1 percent and new home prices by 20.3 percent in the 12 months to June.

"Construction supply and labor shortages, high freight costs and high levels of construction activity continued to contribute to price increases for newly constructed dwellings," said Michel Marquardt, head of price statistics at ABS.

"CPI's automotive fuel chain hit a record high for the fourth consecutive quarter. Fuel prices rose strongly in May and June after a fall in April due to cut in fuel excise."

The devastating floods that ravaged much of the East Coast earlier this year resulted in a 7.3 per cent increase in vegetable costs and 3.7 per cent increase in fruit prices in the June quarter alone.

ABS said supply chain disruptions due to flooding incidents, labor shortages and rising freight costs contributed to higher prices.

Responding to the data, Treasurer Jim Chalmers warned that it would be "harder for Australians" by the end of 2022 before "easing".

Chalmers will make a ministerial statement on the economy in parliament on Thursday, which he said will be 'confronted'.

"It's not news to the millions of Australians who go to the supermarket every time and bill every time they feel the challenge of its inflation," he told reporters on Wednesday.

The figures are expected to prompt the Reserve Bank of Australia (RBA) board to raise interest rates at its next week's meeting.