Inflation rates are rising steadily

Market participants and economists are now forecasting that rate rises in Australia could happen three times next year, says InvestSMART’s Evan Lucas.

It comes as for the first time in almost six years, the Reserve Bank’s preferred measure of inflation has risen within its target band.

"Not 2024 – next year," Mr Lucas told Sky News Australia.

"So the expectation is that by December next year we could actually have the cash rate, to these people anyway, at .75 of one per cent.

"That would be very aggressive … and would certainly go against what the RBA is saying publicly, and also privately, around what people want to do.

"They want an overrun – but at the same time if you have inflation in this level it needs to happen."