“The Albanese government is waving the white flag on inflation and surrendering to persistent inflation and more rate hikes that risk break families and small business”, said Shadow Treasurer, Tim Wilson.
Mr Wilson's comments come in the wake of the latest Consumer Price Index data from the ABS for August. It shows headline inflation rose at 4.0 per cent, while underlying inflation, which is what matters most to the RBA, remained at 3.6 per cent, the 14th consecutive month above the RBA's target band. Australia continues to have much higher core inflation than all G7 economies.
“Families and small business woke up to a 16th rate hike on their mortgage today, and inflation data has highlighted that there may be more interest rate pain to come”, said Shadow Treasurer, Tim Wilson.
“The Albanese economic model is running small business and households into the ground, they have nothing more to give, and they're looking for the government to help – instead they're raising the white flag and letting inflation win”.
“Yesterday the Reserve Bank was forced to raise interest rates for the fourth time this year. Today the inflation data shows exactly why. Australia has a homegrown inflation problem, and it was baked in before a single bomb was dropped on Tehran”, Mr Wilson said.
“Jim Chalmers has been playing a game of interest rate chicken with the Reserve Bank. The RBA blinked, and Australian families and small businesses are the ones who keep getting run over”.
“On Monday the Treasurer handed down a $22 billion deficit with spending at its highest share of the economy since 1986-87 outside the pandemic. This was driven by $44 billion of discretionary decisions by the Albanese government. Every one of those dollars is pouring fuel on the inflation fire, and today we see the smoke”.
“The Albanese government's active inflation agenda is designed to stoke inflation, tax inflation and spend inflation in a vicious cycle that keeps Australians poorer”.
“Families are sitting around the kitchen tables of the nation tonight asking what else they can possibly cut from their budget. The Albanese government will never pull in its belt, but it always expects Australians to pull in theirs”.
“Small business is being squeezed from every side, with higher costs, higher rates and customers with less to spend. When cash flow is king, the government's inflation addiction is strangling the self-starters who keep this country running”.
“If the Treasurer doesn't get spending down, economists are warning of more rate rises to come that will push countless families and small businesses over the edge”.
“The Coalition has a plan to get inflation down and take pressure off interest rates. We will crack down on the waste, fraud and abuse of public money that is stoking inflation, get government living within its means by putting a speed limit on spending, and deliver our Tax Back Guarantee so every Australian worker gets a bigger, permanent tax cut, every year”.
“Australians deserve an economy where hard work gets them ahead, not one where they run faster just to stand still”.
Deputy Leader of the Opposition and Acting Shadow Minister for Finance, Jane Hume, said “Australians are paying the price of this Government’s economic mismanagement.”
“Underlying inflation, which strips away fuel, has been above the RBA’s target band for 14 straight months”, Senator Hume said.
“Labor’s reckless spending is keeping inflation and interest rates higher for longer, hurting all Australians.”
“Yesterday the RBA Governor said “Productivity is doing nothing” because you can’t spend your way to productivity.”
“Labor needs to get spending under control and focus on growing the economy, not growing government.
| Annual Core Inflation | AUG-26 | JUL-26 |
| France | 1.1% | 1.3% |
| Italy | 1.5% | 1.6% |
| Japan | 1.7% | 1.8% |
| Canada | 2.4% | 2.3% |
| Germany | 2.4% | 2.4% |
| US | 2.4% | 2.5% |
| UK | 2.6% | 2.6% |
| Australia | 3.6% | 3.6% |
Source: Trading Economics
| Indicator | Monthly | Annual | Since the change of government |
| All Groups CPI | 0.4% | 4.0% | +16.8%* |
| Housing | 0.2% | 5.7% | +23.9%* |
| Rents | 0.3% | 3.6% | +24.0%* |
| Electricity | 0.0% | 13.2% | +37.0% |
| Gas & Household Fuels | 0.0% | 3.5% | +44.1% |
| Food & Non-Alcoholic Beverages | -0.1% | 3.0% | +18.1%* |
| Transport | 4.2% | 5.6% | +7.1%* |
| Automotive Fuel | 14.8% | 13.5% | +7.2% |
| Insurance | 0.7% | 5.6% | +43.3%* |
| Health | 0.1% | 3.9% | +19.9%* |
| Education | 0.1% | 4.7% | +22.9%* |
All figures in this table are original basis (ABS 6401.0). Since the change of government: unmarked rows are monthly, May 2022 to August 2026; * rows are quarterly, the June quarter 2022 to the June quarter 2026.