Broken promise no respite from rising cost of living pressures - Wednesday 31 January 2024

Thursday, 01 February 2024

Today’s quarterly Consumer Price Index (CPI) data reflects just how entrenched and persistent price rises are in Australia.

The figures confirm that since the 2022 election, the price level has increased by almost 10% - the equivalent of doubling the GST.

This means the purchasing power of an Australian earning a gross salary of $85,000 has fallen by more than $7,600 since Labor came to office.

Headline inflation remains more than 1.6% above the midpoint of the RBA’s target band, with food, housing, insurance, health and education costs all growing faster than the headline inflation rate.

Core inflation measures remain higher than the headline rate, and domestic (non-tradable) inflation is a remarkable 5.4%.

Inflation is homegrown, growing too fast, and is entrenched. Australian households have no relief in sight from a Labor government that would rather break promises than manage the economy.

Shadow Treasurer Angus Taylor said while it is encouraging to see the rate of inflation ease, prices are still too high due to Labor’s failure to rein in spending and grow the economy.

“Labor has smashed household budgets with higher prices, higher mortgage repayments and higher taxes.

“Families are feeling the pain of a 10% increase in prices since the last election, and Labor’s broken promise does not touch the sides. It is a band aid on a bullet wound.

“How does the government plan on reversing the collapse in living standards? Family budgets have been stretched to their limits.

“Everyone knows that the best way to take pressure off inflation is to rein in spending and boost productivity. But Labor has no plan to grow the economy and has spent an additional $209 billion since the last election, more than $22,000 per household.

“Labor’s failures on workplace relations, energy, housing and tax are driving up the cost of living for all Australians. In fact, their only plan is to break promises and increases taxes. This is a government at war with aspirational Australia.

“The economy has shuddered to a halt and the damage has been done to household budgets. Yet, the government is only focused on making their budget bigger at taxpayers’ expense. They care more about politics than policy.

“That’s why their broken promise on stage three tax cuts is so egregious. Their plans are forecast to rake in at least $28 billion in more taxes over the next 10 years because of bracket creep.

“This is no way to manage the economy.

“Strong economic management - not broken promises - is the only way to provide relief to middle Australians from Labor’s cost of living crisis.”



Prices under 18 months of Labor (June 22 to Dec 23)