The annual inflation rate has risen to 7.3 per cent as surging gas prices add pressure to household budgets.
The latest quarterly consumer price figures come on the back Treasurer Jim Chalmers' federal budget, which aimed to offer some cost-of-living relief without fuelling inflation.
Inflation rose 1.8 per cent in the September quarter, taking the annual rate to 7.3 per cent, according to the latest Australian Bureau of Statistics figures.
The annual inflation rate has not run this high since June 1990, when it was at 7.7 per cent.
The major driver of the September quarter rise were increases in the price of gas, new dwellings and furniture.
The pain is not over for households, with inflation forecast to peak at 7.75 per cent in the final three months of this year.
Inflation is set to remain higher for longer than first anticipated because of surging energy prices.
The federal government is mulling an intervention into the energy market, after Tuesday's budget forecast electricity prices could rise up to 56 per cent in the next two years.
Gas prices, which surged after Russia's invasion of Ukraine, are also expected to remain high.
Treasurer Jim Chalmers on Tuesday revealed the government would consider "regulatory interventions" and the Prime Minister on Wednesday indicated that the Australian Competition and Consumer Commission (ACCC) will likely have a strengthened further role.
"It means regulatory engagement, intervention into the market, which is something that we will give strong consideration to," Mr Albanese told the ABC's RN Breakfast program.
"We'll be taking the advice of the appropriate departments about an appropriate intervention. We understand the pressures that are on here."
More to come
WHAT DO YOU THINK? We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Newcastle Herald website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.
