Inflation has climbed to its highest level since before the Global Financial Crisis after large increases in prices for fruit, vegetables and petrol.

The Australian Bureau of Statistics on Wednesday reported the consumer price index climbed by 0.8 per cent in the September quarter, taking annual inflation to 3.8 per cent. That is the highest annual rate since 2008 when petrol prices surged to $US150 a barrel.

The annual rate, which would normally force a response from the Reserve Bank, was expected as big falls in the cost of child care and petrol that occurred in the June quarter of 2020 fell out of the result.

Food and non-alcoholic beverages increased 0.5 per cent over the quarter. But shoppers faced much higher food prices at the grocery store with vegetables up 5.5 per cent and fruit rising 4.7 per cent due to a shortage of pickers as the international borders remain closed due to the coronavirus pandemic.

Extreme rainfall on the nation’s east coast and Cyclone Niran reducing banana crop yields have also impacted the price. Beef and veal prices were also up, by 3.6 per cent, as farmers re-build their herds, which is limiting the meat supply.

State government schemes to encourage spending at local businesses have offset the price rises in the overall figure, cutting out of pocket takeaway and fast food costs by 0.7 per cent and reducing restaurant prices by 0.6 per cent.

Petrol prices rose by 6.5 per cent through the quarter while medical and hospital services lifted by 2.4 per cent due to the annual increase in private health insurance premiums.

The biggest quarterly result occurred in Perth where prices jumped by 1.9 per cent, driven largely by its annual increase in electricity prices.

The cost of furniture also spiked over the quarter, jumping 3.8 per cent. The Bureau says this is due to the high demand for timber with supply constraints pushing up prices. Builders have been warning that the lack of supply of timber has been an ongoing issue during the building boom on the back of the federal government’s HomeBuilder grant.

Over the past year, annual inflation was highest in Darwin at 6.1 per cent. There was a sharp lift in domestic holiday travel and accommodation costs which jumped by 17.5 per cent in the quarter due to increased seasonal demand.