The independent Reserve Bank Governor last night confirmed that Australia’s inflation is being driven by domestic factors, is widespread and will be higher for longer. The Prime Minister and the Treasurer are now at direct odds with the RBA Governor with their view of inflation.
Shadow Treasurer Angus Taylor said this is an inevitable consequence this Government being distracted, out of touch with cost of living pressures, and out of its depth on the economy.
“Labor have announced more than $188 billion in new spending in just 18 months - more than $20,000 per household,” Mr Taylor said.
“Labor’s economic plan isn’t working with Australians suffering the worst fall in real disposable income in the OECD, collapsing productivity, and an economy that is going backwards on a per person basis.
“Australians deserve a government that puts Australians’ interests first.”
Labor’s decisions are making the pain of inflation worse:
- Poorly managed migration that is making rents and housing unaffordable
- Energy market interventions that aren’t bringing down prices and costing billions in taxpayers money.
- Bad workplace laws that will remove flexibility for workers, raise prices, and make it harder for young Australians to get a job.
- Broken promises on taxes - whether it is franking credits, retirement savings, personal income tax, or Australian companies - Labor are taking more money out of Australians’ pockets at a time they need it most.
In Governor Bullock’s own words, the inflation crisis is “homegrown”.
This inflation crisis is coming from Canberra. The Albanese Labor Government has no one to blame but themselves for being asleep at the wheel and distracted.
The cost of living crisis is what families are discussing at the kitchen table, but it’s clear that it’s not being discussed around Albanese’s Cabinet table.