Australia’s inflation rate has climbed to 4% over the past year, up from 3.5%, prompting renewed scrutiny of the government’s economic policies. The treasurer has attributed the rise to global oil price increases linked to geopolitical tensions, particularly the conflict involving Iran and Israel, rather than domestic spending. With concerns growing that the Reserve Bank may raise interest rates again soon, the government faces pressure to address public skepticism over its handling of inflation. Critics have accused officials of downplaying the role of government expenditure in driving up prices.
Jim Chalmers says ‘higher global oil prices flowing through to oil prices in Australia’ are to blame for inflation rising from 3.5%Follow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastInflation has jumped to 4% in the year to August, from 3.5%, as Jim Chalmers was again forced to defend Labor’s economic management amid fears the Reserve Bank will need to hike interest rates again before Christmas.The increasingly embattled treasurer was asked if he was “gaslighting” Australians by insisting that government spending was not responsible for high inflation, blaming instead higher fuel costs associated with the ongoing US-Israel war on Iran. Continue reading...
