“The Albanese government’s addiction to spending means underlying inflation remains stubborn with prices at the supermarket remaining high, with interest rates”, said Shadow Treasurer, Tim Wilson.
Mr Wilson’s comments come in the wake of the latest Consumer Price Index (CPI) data from the ABS. It shows that Australia has higher core inflation than all G7 economies. Underlying inflation, which is what matters most to the RBA, remained at 3.6%, the thirteenth consecutive month above the RBA's target band.
“Jim Chalmers has been playing a game of interest rate chicken with the Reserve Bank, daring them to raise interest rates because of his addiction to inflation. He may well get his wish with underlying inflation remaining well above the RBA’s target band”, Mr Wilson said.
“Underlying inflation has been above the RBA’s target band 14 of the 17 quarters under this government, the highest ratio of any government since the target band was introduced. This is putting immense pressure on the Reserve Bank to raise interest rates which would push countless Australian families over the brink”.
“Australian families are paying more for everything because the Government can’t stop spending money. Their active inflation agenda is designed to stoke inflation, tax inflation, and spend the inflation in a vicious cycle that keeps Australians poorer”.
“While inflation remains above the RBA’s target band, Australians will continue to live in fear of yet another interest rate hike, on top of the 15 that have already been delivered since Labor came to power”.
“On every metric, Australians are going backwards under Labor. The Coalition’s Tax Back Guarantee will protect Australian workers’ wages and salaries from the impacts of Labor’s active inflation agenda by providing a bigger, permanent tax cut, every year”.
| Annual Core Inflation | JUL-26 | JUN-26 |
| France | 1.3% | 1.0% |
| Italy | 1.6% | 1.6% |
| Japan | 1.8% | 1.6% |
| Canada | 2.3% | 2.1% |
| Germany | 2.4% | 2.5% |
| US | 2.5% | 2.6% |
| UK | 2.6% | 2.6% |
| Australia | 3.6% | 3.6% |
(Source: Trading Economics)
| Indicator | Monthly (SA) | Annual | Since the change of government |
| All Groups CPI | 0.6% | 3.5% | +16.8%* |
| Housing | -0.3% | 5.0% | +23.9%* |
| Rents | 0.3% | 3.6% | +24.0%* |
| Electricity | -5.2% | 6.1% | +32.6% |
| Gas & Household Fuels | -1.8% | 3.7% | +36.0% |
| Food & Non-Alcoholic Beverages | 0.3% | 3.2% | +18.1%* |
| Transport | 2.4% | 1.6% | +7.1%* |
| Automotive Fuel | 7.5% | -0.4% | -6.6% |
| Insurance | 0.2% | 4.2% | +43.3%* |
| Health | 0.4% | 3.8% | +19.9%* |
| Education | 0.4% | 4.8% | +22.9%* |
Monthly and since-the-change-of-government figures are seasonally adjusted (ABS 6401.0, table 7); the latter from May 2022. Annual figures, and * rows measured from the June quarter 2022, are original basis.