Financial Planner and Author Patricia Howard says Australia has a “situation” where inflation is “rising”.

“We also have substantial wage growth of about four per cent,” she told Sky News Australia.

Ms Howard said “we’re also looking at a federal government budget which by every indication” is “going to be inflationary”.

“There’s going to be more defence spending, more spending on the NDIS, then it’s going to be followed in quick succession by the stage three tax cuts.

“That’s going to put even more money into the economy and with that more pressure on prices.”