Albanese Government's Spending Spree Sparks Inflation Fears

The Albanese government's spending habits have been criticized for fueling inflation and putting pressure on interest rates. According to Shadow Treasurer Tim Wilson, the government's addiction to spending means underlying inflation remains stubborn at 3.6%, above the Reserve Bank of Australia's target band.

This is the thirteenth consecutive month that underlying inflation has exceeded the RBA's target band, with prices remaining high at supermarkets and interest rates on the rise. Wilson said, '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.'

The data from the Australian Bureau of Statistics shows that Australia has higher core inflation than all G7 economies. Underlying inflation has been above the RBA's target band 14 out of the 17 quarters under this government, the highest ratio of any government since the target band was introduced.

Australia's annual core inflation rate stands at 3.6%, while France, Italy, Japan, Canada, Germany, the US, and the UK all have lower rates. The data also shows that Australian families are paying more for everything due to the government's inability to stop spending money, with a vicious cycle of inflation stoking, taxing, and spending.