AUSTRALIAN INFLATION AT HIGHEST POINT IN SIX YEARS.

SYDNEY, March 3 Asia Pulse - Inflation is at its highest point in six years, fuelled by the soaring cost of rent, vegetables and financial services, a survey says.

The TD Securities/Melbourne Institute Monthly Inflation Gauge rose by 0.3 per cent in February, following a 0.3 per cent rise in January.

In the twelve months to February, inflation was 4.0 per cent, following a 3.9 per cent rise in the twelve months to January, according to the gauge.

The 4.0 per cent rate of inflation was the highest recorded by the TD Securities/Melbourne Institute gauge in six years and a sharp acceleration from the low of 2.6 per cent recorded in May and June last year.

TD Securities senior strategist Joshua Williamson said inflation increased in February despite a fall in price of some volatile items such as petrol.

"The inflation gauge continues to show inflation on a strong upward trend," Mr Williamson said in a statement today.

"This indicates that price pressures are more broadly based than just food and petrol. Furthermore, the monthly increase pushed yearly inflation to 4.0 per cent, which is well above the top of the RBA's (Reserve Bank of Australia) inflation target band."