This week's interest rate rise has exposed cracks in the consensus between Chalmers and Lowe

The budget had a "broadly neutral" impact on inflation. The energy price caps will "help" put downward pressure on inflation in the short term.

Specifically, on wages, the governor pointed to the Fair Work decision, along with the "wage policies" of both state and federal governments.Labor proudly wears them as a badge of honour: advocating for inflation-matching wage growth for the lowest paid, multi-employer bargaining to help childcare workers and others; a 15 per cent pay-rise for aged care workers; and a commitment to introduce new "same job, same pay" laws to improve the lot of those in labour hire.

While not begrudging the lowest paid being "compensated for inflation", he is concerned about this spreading across the economy. "We'll get ourselves though into trouble if we accept the premise that all workers need to be compensated for inflation," he said.Chalmers can't bring himself to agree with Lowe's clear view that "all workers" should not be compensated for inflation.

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