Could there be three rate hikes this year?

Inflation pressures were meant to be coming off a bit more by now, but a higher than expected reading has one prominent economist suggesting interest rates could go up three times this year.

So, why is inflation so sticky? And will the Reserve Bank feel compelled to lift rates to further dampen economic activity? 

Today, chief business correspondent Ian Verrender explains what’s going wrong. 

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Ian Verrender, ABC Chief Business Correspondent