Inflation climbs on fuel and houses, pushing above the bottom of Reserve Bank target range

A jump in fuel prices has contributed to a broader rise in inflation over the past few months, which could put upward pressure on interest rates.

The official ABS measure of consumer prices rose 0.8 per cent over the September quarter, with prices 3 per cent higher than a year earlier.

The quarterly rise was driven primarily by a jump in fuel (7.1 per cent) and new dwelling purchase (3.3 per cent) costs.

Rising energy costs have caught the attention of Steve Cassidy, who runs a truck mechanic business in Sydney’s west.

He runs a fleet of mobile mechanic vehicles that meet broken-down trucks and other machinery in and around Sydney.

“I think 12 months ago it was $1.20 a litre, and now today I was driving to work and it was nearly $1.60 a litre,” he told The Business.

This week the national average petrol price rose to a 13-year high and is at record levels in some cities.