Jim Chalmers makes blunt admission about inflation – as fears mount over another interest rate rise
- Jim Chalmers is confident inflation will be brought under control
- He admitted it won’t be an easy process
Jim Chalmers expects inflation to come under control, but he admits this will not be an easy process with the rate hitting four percent in May.
The treasurer on Sunday was preparing for Phase 3 tax cuts and other federal government measures to come into effect from Monday.
But fears that the official interest rate, currently at 4.35 percent, would be raised for the 14th time this cycle overshadowed the message.
Dr. Chalmers acknowledged that many households are “under the pump” due to higher cost-of-living pressures and higher interest rates, but he said he expected the government’s policies to be “helpful in the fight against inflation.”
“We are confident, but not complacent, that we can meet this inflation challenge,” said Dr Chalmers.
“We can lower the cost of living and improve the budget without destroying the economy.”
Speculation about a new rate hike gathered pace on Wednesday after higher-than-expected inflation figures, which stood at 4 percent in the 12 months to May, prompted investors to increase their bets on another rate hike when the RBA’s next meeting is scheduled for August 6.
“I think it’s clear that the rate hikes that are already in the system are putting a lot of pressure on people,” said Dr. Chalmers.
Federal Treasurer Jim Chalmers says he expects inflation to be tamed, despite the May rate hitting 4 percent and mounting fears that the Reserve Bank could be forced to raise cash rates again.
‘We have seen that in a whole series of economic indicators. I understand that, and that’s another reason why this help is so important tomorrow.”
But he warned Australians should not simply assume inflation will subside on its own.
“This inflation in our economy will continue to decline. It doesn’t always decrease in a perfectly straight line,” said Dr. Chalmers.
‘We’ve seen that all over the world. And we’re seeing that here in Australia too.
‘But our role is to try to make people’s lives a little bit easier.
“That’s why the tax cuts, lower energy bills, wage increases, cheaper medicines and paid parental leave are all intended.”
The Finance Minister spoke on Sunday about the Phase 3 tax cuts and other federal government measures coming into effect from Monday (stock image)