Chalmers Blames Global Oil Prices for Inflation Spike

Treasurer Jim Chalmers has disputed claims that he is at odds with Reserve Bank governor Michele Bullock over inflation concerns. He insisted they are on the same page, pointing to his previous statements about the war in the Middle East contributing to global oil price increases.

Data released on Wednesday showed Australia's headline inflation rate jumped to 4% in the year to August, while underlying inflation remained at 3.6%, well above the Reserve Bank's target band of 2-3%. The figures came a day after the RBA raised interest rates by 25 basis points to 4.6%, their highest level in 15 years.

Chalmers attributed the increase in headline inflation to higher global oil prices, saying all of the annual increase was due to rising fuel costs and the unwinding of last year's energy rebates. He noted that this came after four months of moderating inflation rates.

The Opposition Leader, Angus Taylor, has called for a bipartisan taskforce to cut government spending, citing concerns about its impact on inflation and interest rates. However, Chalmers maintained that government spending at a 40-year high was not creating demand faster than supply could keep up.