Voters Reject Chalmers' Blame of Middle East for Rate Hikes

A majority of Australians have rejected Treasurer Jim Chalmers' claim that higher interest rates are primarily due to the Middle East conflict. The latest News24.com.au / YouGov Pulse poll found that 63% of voters disagreed with his explanation, while only 37% agreed. The poll, conducted between September 29 and October 6, followed the Reserve Bank of Australia's decision to raise the cash rate to a 15-year high of 4.6%. Mortgage holders were particularly sceptical, with 67% rejecting Chalmers' excuse.

Labor voters were the only major voting bloc to support Chalmers, with 69% agreeing with his view. Among Greens voters, 51% were sympathetic, but 49% disagreed. Meanwhile, 92% of One Nation voters and 76% of Coalition voters rejected the explanation. The results add to the political pressure facing Chalmers after a challenging period for the government on economic management.

Chalmers has repeatedly blamed the Middle East conflict and surging global energy prices for Australia's renewed inflation problem. However, RBA Governor Michele Bullock stressed that Australia's inflation issue extends beyond global energy shocks, pointing to domestic capacity pressures, strong spending, weak productivity growth, and a tight labour market. Official inflation data showed headline inflation climbed from 3.5% to 4% in the year to August.

The mounting economic pressure has prompted calls for Chalmers' resignation from the Coalition and One Nation. Additionally, Labor MPs have expressed discontent with the government's economic messaging. The latest poll also saw Labor sink to just 25% of the primary vote, its lowest ever in a federal election since 1901. One Nation climbed one point to 28%, opening a three-point lead over the government.