Koch Slams Govt Spending as Inflation Pain Falls on Households

David Koch has doubled down on his criticism of government spending, arguing that Australian households are bearing the cost of inflation while governments continue to fuel demand.

Koch, a businessman and former television host, claims that households have already tightened their belts after repeated interest rate rises, but governments have failed to do the same.

'We've done our bit. Household spending has slowed dramatically, business confidence has crashed, consumer sentiment is down, we have gone into our bunker,' Koch said.

Koch argues that global oil prices and government demand are among the forces keeping inflation elevated, claiming public spending is undermining efforts by households to rein in consumption.

'We've been countered by government spending, and interest rates hit the wrong people. Why should we pay for it?' Koch said.

RBA Governor Michele Bullock acknowledged in May that government spending adds to demand, saying both the public and private sectors need to contribute to slowing the economy as the RBA seeks to bring inflation under control.