Australian consumer prices in the January to March quarter rose at the fastest pace in nearly 21 years, fueling speculation in financial markets that the central bank will soon go ahead with an interest rate hike to curb inflation.

The Australian Bureau of Statistics says the Consumer Price Index was up 5.1 percent from the same quarter last year. It says the most significant price increases were for new housing, and automobile fuel due to higher crude oil prices.

Central banks in other countries are moving to tighten credit in order to fight inflation. Policymakers at the US Federal Reserve have indicated a willingness to raise the benchmark rate by half a percentage point in May.

The head of the European Central Bank has suggested it may press ahead with a rate hike sometime within this year.