Home owners can expect the Reserve Bank to lift interest rates, after inflation surged by 1.3 percent over the December quarter.

A jump in petrol prices and new dwellings were the main contributors to the increase, which is bigger than expected.

Economist and director at Adept Economic, Gene Tunney, said the RBA will have to act earlier than previously expected.

He said it took the market by surprise, although similar scenarios were occurring overseas.

“All of the bank economists are revising their forecasts of when the Reserve bank will put up the cash rate, now they are saying that’s probably going to be as early as August this year,” he said on 4BC Drive.

“Previously they were thinking a bit later this year, or early 2023.”

Press PLAY below to hear his reaction to the Opposition’s plan to raise wages

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