Australia’s annual inflation rate has smashed market expectations, rising 3.5 percent in 2021, according to new data from the Australian Bureau of Statistics (ABS). The underlying inflation rate also jumped to its highest level since 2014, at 2.6 percent, reflecting the broad level of price increases. The annual CPI (consumer price index) inflation jumped on the back of a surge in the December quarter, rising 1.3 percent over the three months. The big four banks had expected the headline inflation rate to read 3.2 percent and the underlying inflation rate to be around 2.4 percent, while the quarterly rise predictions ranged from 0.7 to 1.1 percent. ABS Head of price statistics, Michelle Marquardt said new dwellings and automotive fuel continued to lead the rise across the December quarter. “Shortages of building supplies and labour, combined with continued strong demand for new dwellings, contributed to price increases for newly built houses, …