The Reserve Bank of Australia will next week be forced to consider an election campaign rate hike for the first time in almost 15 years after inflation surged to a stronger than expected 5.1 per cent, the highest level since 2001.

Underlying inflation, the RBA’s preferred measure, spiked to 3.7 per cent, smashing the bank’s 2–3 per cent target, leaving many economists in no doubt the record low 0.1 per cent cash rate would rise next Tuesday.