SYDNEY, March 4 (Reuters) - Australia's economy grew at the fastest annual ​pace in almost three years ‌in the December quarter, data showed on Wednesday, a pick ​up that reignited inflation ​and required a hike in ⁠interest rates to tamp ​things down.

Data from the Australian ​Bureau of Statistics showed real gross domestic product (GDP) rose 0.8% in ​the fourth quarter, up ​from 0.5% the previous quarter. Analysts this ‌week ⁠had upgraded their forecasts to around 1.0%.

Annual growth accelerated to 2.6%, the fastest ​pace since ​early ⁠2023 when post-pandemic stimulus was still being ​felt. The Reserve Bank ​of ⁠Australia judges the economy cannot grow above 2.0% without ⁠generating ​inflation, which led ​it to raise rates last month.