Economists say the breadth and size of price increases – many of which flow from domestic sources – suggest the central bank will have to move on rates hard and fast.

The Reserve Bank of Australia’s warning that price rises could surprise to the upside was realised in new data released on Wednesday.

Inflation is continuing to cool with the annual headline rate rising to 3.5 per cent in July, but some economists say it has increased the risk of another interest rate hike by…