<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/inflation" rel="" target="" title="Inflation"><span>Inflation</span></a><span> has surged to its highest level in almost three years as borrowers brace for a potential third consecutive </span><a href="https://www.9news.com.au/interest-rates" rel="" target="" title="interest rate hike"><span>interest rate hike</span></a><span> to start the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>New data from the Australian Bureau of Statistics released this morning showed the consumer price index rose 4.6 per cent over the 12 months to March, up from 3.7 per cent in February.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While that was slightly lower than economists' expectations, it remains far higher than the </span><a href="https://www.9news.com.au/reserve-bank-australia" rel="" target="" title="Reserve Bank's"><span>Reserve Bank's</span></a><span> target band of 2-3 per cent, and is the worst figure since 2023, when inflation was coming down from a peak of more than 7 per cent.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/one-nation-leader-pauline-hanson-brags-about-being-gifted-new-plane/b4f85257-73e3-4b60-b2d0-042b09f84b10"><strong><span>'Yes, it's sexy': Pauline Hanson brags about being gifted new plane</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The surge was driven primarily by </span><a href="https://www.9news.com.au/petrol-prices" rel="" target="" title="skyrocketing petrol prices"><span>skyrocketing petrol prices</span></a><span> caused by the war in Iran and ensuing closure of the Strait of Hormuz.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, in a silver lining for borrowers fearing another rate hike, the trimmed mean – the RBA's preferred measure of underlying inflation – remained steady at 3.3 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Prior to today's data, financial markets had been pricing in a roughly three-quarters chance of an interest rate rise when the RBA's monetary policy board meets next week, and all big four banks are forecasting a hike.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/inflation-data-australia-march-2026-quarter-interest-rate-implications/575bc24a-ead7-4abd-a49c-b9c9753af93c" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>More to come.</span></em></div></div>