Wednesday, 30 September 2026

Topics: inflation; interest rates.

E&OE……………………..

Tim Wilson: We've had further distressing news for Australian households as the Albanese government seems determined to wave the white flag on inflation. Today we've had the latest CPI data confirm that headline inflation has risen to 4% off 3.5%. But more distressingly, core inflation or underlying inflation has remained consistent at 3.6%. That means that the Reserve Bank will have no temptation to ease the pressure on interest rates.

Yesterday Australians experienced the 16th interest rate rise under the Albanese Government. Australians are looking at their household bills right now and wondering how it is they're going to make ends meet. Australians are sitting around the kitchen tables of the nation and they're looking at how they're going to cut anything out of their household budget and realising they have nothing further to give. Meanwhile, the government continues to spend with gay abandon without any sense of understanding of the consequences that if they keep stoking inflation, Australian households are going backwards.

And the international comparisons are stark. Australia's headline inflation is 4%. The United States is 3.4%, Italy 3.3%, the UK 3.1%. Australian households are also doing it tough because when they go to the supermarket, they're paying more and getting less in their trolley. What we know is that they're experiencing real pain as the cost of basic goods goes up. Bread has increased by 22.2% under the Albanese government. The price of milk has gone up by nearly a third under the Albanese government. Coffee and tea has increased by 23.7% under the Albanese Government. We were told we would get a $250 reduction in our electricity bills. Well, electricity has gone up by 37% under the Albanese Government, and gas has increased by more than 44%.

Every place that Australian households are turning for help, the Albanese government is waving the white flag to rising inflation and pressure. Interest rates are rising and yesterday the RBA's hand was forced yet again, and the only consequence is that households are doing it tougher, small businesses are breaking, and the solution from the Albanese Government is to turn around and continue to stoke inflation because they're unwilling to pull in their belt. The Albanese government turns around to Australians and asks them to pull in their belt, but they won't do the same.

If the Albanese government pulled in their belt like they're asking Australians, the budget would be in surplus by around $22 billion a year. Government spending is now at a consistent 40-year high outside a pandemic. Until the government understands that their spending is the source of inflation in the economy, until they kick the habit and addiction to spending and inflation, Australian households and small businesses will continue to pay the price. Thank you.

[ENDS]