Soaring inflation puts pre-election interest rate hike on the cards

  • 📰 9NewsSyd
  • ⏱ Reading Time:
  • 27 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 51%

Loans Loans Headlines News

Prime Minister Scott Morrison says international challenges are to blame for Australia's cost of living crisis, as inflation soars to a 21-year high. 9News

If Australia's Reserve Bank raises the official cash rate next week, Scott Morrison will become the first prime minister to face an interest rate rise during an election since John Howard in 2007.However, speaking to reporters, Mr Morrison denied the two situations could be compared.Combined with export demand and higher fuel costs, food prices have been heading north at a faster rate than inflation.

Inflation is now at 5.1 per cent, its highest level since since 2001, when the Goods and Services Tax was introduced. "One of the Reserve Bank's main job is to control inflation, to control the cost of living, and what we have just seen is inflation at 5.1 per cent, and that's twice what wages are growing at.

While the extra stimulation to the economy was necessary, some actions, such as paying millions in JobKeeper to retail giant Harvey Norman had failed to have the desired impact, Mr Dennis said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

It’s always someone else’s fault!

Australian’s are fed up with a government that is responsible for nothing and unaccountable for anything . People want ideas and policies that make a difference, not constant excuses. Time to find a real job Scott

policies open to the riches and conveniently blaming on oversea challenges

Nah mate, it started when you follow your USA master to go against China when a high percentile of Australian businesses relied on China products and market. Then that 2 years of locked border when you basically evicted int students and migrants out of Australia. And many more.

Government bail outs and QE cause inflation

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 23. in LOANS

Loans Loans Latest News, Loans Loans Headlines