Australia's inflation rate has soared to its highest level in 20 years with supply constraints and the Ukrainian conflict adding price pressures within the economy.
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Annual consumer price index figures to the end of March surged 5.1 per cent, with significant rises in fuel and new dwelling prices causing the inflation surge.
It is the highest rise in inflation since the introduction of the goods and services tax in 2001.
On a quarterly basis, inflation rose 2.1 per cent.
Inflationary pressures will add further stress to the Reserve Bank's timeline to hike the cash rate, with a number of economists believing the central bank needs to act now.
The RBA's inflation target range to lift rates is 2 to 3 per cent.
EY chief economist Cherelle Murphy said the current 0.1 per cent setting is no longer appropriate, saying the RBA needs to follow other central banks in tightening monetary policy.
"The Reserve Bank must join other central banks around the world and tighten monetary policy," she said.
"To not do so risks the RBA losing credibility."
Trimmed mean annual inflation came in at 3.7 per cent.
According to the Australian Bureau of Statistics, automotive fuel prices over the quarter rose 11 per cent, while new dwellings jumped 5.7 per cent compared to the prior corresponding period.
Tertiary education prices also rose 6.3 per cent.
The fuel price hike is also a record price rise for the third-consecutive quarter and is the highest inflation levels felt in automotive fuel since the 1990 Iraq invasion of Kuwait.
Fuel prices in late February soared beyond $2.20 a litre as a result of the Ukraine invasion, which spooked global oil suppliers that Russian oil reserves could be slapped by sanctions.
Russia produces nearly 9 per cent of the world's oil supply.
Head of prices statistics at the ABS, Michelle Marquardt said shortages in materials, labour and heightened costs of doing business were major factors in the quarterly rise.
"Continued shortages of building supplies and labour, heightened freight costs and ongoing strong demand contributed to price rises for newly built dwellings," she said.
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"Fewer grant payments made this quarter from the federal government's HomeBuilder program and similar state-based housing construction programs also contributed to the rise."
The federal government in the budget implemented a six-month fuel excise cut of 22.5 cents in a bid to ease the cost pressures at the bowser.
The budget also outlined $250 cash payments to pensioners and social welfare recipients.
Further tax cuts are also set to come into effect next financial, which the commonwealth believes would ease cost of living pressures.
"The CPI's automotive fuel series reached a record level for the third consecutive quarter, with fuel price rises seen across all three months of the March quarter," Ms Marquardt said.
There was also a 6.7 per cent rise in non-food grocery items such as toilet paper and paper towels.
Total food prices rose 2.8 per cent, with vegetable inflation experiencing a 6.6 per cent jump.
