Chalmers Challenges Bullock on 5% Unemployment Rate as Inflation Target

Treasurer Jim Chalmers has pushed back against Reserve Bank of Australia governor Michele Bullock's suggestion that the unemployment rate may need to rise to 5 per cent to tame inflation.

In a press conference on Monday, September 28th, Chalmers argued that workers are not responsible for the economy's inflation problems, and that lower unemployment rates can coexist with decreasing inflation.

Bullock had previously suggested that a 5 per cent unemployment rate could be necessary to bring down inflation, which has been a pressing concern in Australia. However, Chalmers countered by pointing out that it is possible for the country to have lower unemployment and still experience a decline in inflation.