Doorstop - Wednesday 26 June 2024

Thursday, 27 June 2024

Topics: Monthly CPI  





Well, monthly inflation data just out and what a disastrous set of numbers. These are an indictment on this Prime Minister, on this Treasurer, who are out of touch and out of their depth. Labor is hurting Australians. Labor is failing Australians. These numbers tell the story of a government that simply doesn't understand what causes inflation, and what to do about it.  


And it's worth highlighting what we've seen in the numbers that came out today. With core inflation sitting on 4.4% in the last 12 months, up from 4.1%. That's inflation going up, not just prices going up, inflation going up. Headline inflation at 4%, up from 3.6. The expectations were much lower than that. Now, the important point about this is this is not what we are seeing elsewhere in the world.  


This is homegrown inflation, here in Australia. These inflation rates, core inflation is higher than Sweden, the UK, Norway, Canada, New Zealand, the Euro, the United States, and Switzerland. And in every one of those countries, inflation is going down, not up, since December as it is in Australia. It's going up, it's going up. And it's a true indictment on a government that has completely failed. Now, to see just how homegrown inflation is, the domestic component of this inflation is up and sitting on 5.2%. And the imported part is closer to 1%. So this is homegrown inflation, the Reserve Bank Governor has been saying it for some time, and it's very, very clear from these figures, that is the case. Accelerating inflation, going the wrong way and Australians are paying a high price for it. Australians are being failed. In individual components, food since Labor came to power up over 11%. Rent over 14%. Electricity over 21%. Gas 22%. Insurance over 16% since Labor came to power. 


 There is a better way. It's about going back to basics. It's about understanding what causes inflation and what to do about it. It's about going back to the source, not dealing just with the symptoms as this Treasurer does. You can't spin your way out of this one. The Treasurer is running out of spin on this one.  


The truth of the matter is Australians need the problem dealt with. Going to the source of the problem, dealing with the fundamentals and making sure Australians can make ends meet. That is not what is happening under this government and Australians continue to pay a high price. 



Angus is there a case to delay the stage three tax cuts. We're about to pour billions of dollars into the pockets... 



Well you know, what the government should have done is bring down a budget that was actually going to fight and beat inflation. This is the third budget which failed Australians. This budget increases spending by 16% in two years. That is not the budget to bring down when inflation is going up, not down. And it's no wonder we are absolutely at the back of the pack compared to other countries around the world [inaudible]. This government has failed, simply failed. 



But what about the tax cuts?   



Can I make a point about what we've seen in the two hours since this inflation data has come out. The market is saying, don't expect an interest rate cut any time in the next 12 months. If anything, there is a prospect of an increase. You know, when you spend as much money as this government is spending, that's causing inflation. That is causing inflation. 16%. The Reserve Bank Governor made the point that government behaviour, government whether it's both federal and state, is causing this inflationary surge. It's going exactly the wrong way and it's a tough time for the Reserve Bank because of the failings of the government.  



Investors have ramped up that sort of August interest rate rise. Do you think the RBA could be forced to deliver multiple interest rate rises?  



Well look, what is clear is the market has said forget about the prospect of a cut, think about the prospect of an increase. That's what they've said. We've seen it in the numbers in the last two hours. I'm not going to outguess the market, I don't get into forecasting I'm just making the observation as to what they're saying. They are voting on the government every day and the vote on this government's policies is it's failed, is it's failed. That's the truth. That's what they're telling us. This is a Treasurer, he is a doctor of spin, not a doctor of economics. You have to remember that. He simply doesn't understand what drives the economy, what causes inflation and it's why he brought down a third failed budget.  

Labor's failing Australians. Labor's hurting Australians. And Australians are paying a high price.