Underlying inflation is set to surge above 6 per cent in the September quarter, the fastest pace since December 1990, according to the latest National Australia Bank business survey.
NAB group chief economist Alan Oster said a result of that magnitude would indicate a considerable acceleration and broadening of inflation in Australia that would ultimately put pressure on interest rates.
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Ronald Mizen is the Financial Review’s political correspondent, reporting from the press gallery at Parliament House, Canberra. Connect with Ronald on Twitter. Email Ronald at ronald.mizen@afr.com