Treasurer Jim Chalmers says government spending is not responsible for the recent rise in inflation, as Australians await a possible interest rate increase by the Reserve Bank.
Speaking to ABC News Breakfast on Tuesday, Chalmers said the government remained focused on easing cost-of-living pressures, while declining to comment on the Reserve Bank’s decision due later in the day.
Chalmers said the latest increase in inflation was driven by holiday spending, the end of energy rebates and ongoing pressures in the housing market, rather than government expenditure.
He said public demand had slowed significantly over the past year, while private demand had increased, challenging claims that government spending was driving inflation.
Federal energy rebates ended on 31 December, with state-based rebates finishing earlier.
