Australia has recorded the largest quarterly and annual increase in inflation since the Good and Services Tax was introduced in 2000.

New data shows the cost of living has come in at 5.1 per cent for the year to March, 2022.

The jump has mainly been driven by soaring petrol prices, higher housing and food costs.

Nine News finance reporter Chris Kohler told Sofie Formica the price of red meat has risen by 12 per cent on average compared with this time last year.

“Veggie prices also up 12 per cent, lamb seven per cent, coffee eight per cent,” he listed.

“This is really, pretty much across the board and it goes beyond food, of course.

“Transport costs are 13 per cent higher than they were this time last year, even postal costs are up seven per cent.”

The federal government has responded to the shock inflation figure, arguing international pressures need to be taken into account.

There are warnings today’s dire figures could trigger the first major interest rate hike as early as next week.

“A lot of the economists that I’m talking are saying that they won’t like to hike or make a move during an election month – they’ve only done that twice, that I can see, since 1990.

“They’re more likely to wait until June but by then, we’re talking about even more price inflation.

“The tightrope walk for them to do right now is to balance price inflation with the amount of debt that everybody has because of high house prices.”

Press PLAY below to hear The Finance Report with Chris Kohler in full

Image: Australian Bureau of Statistics / Consumer Price Index, Australia March 2021 &  Getty