Treasurer Jim Chalmbers issues dire warning ahead of new inflation figures
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The Treasurer issues a dire warning that the price of everything will continue to rise for Australians every day, but there may finally be some good news on energy prices.
- Inflation expected to rise when figures are released on Wednesday
- Jim Chalmers believes the worst is over, but challenges will remain
- The intervention has slowed the expected increase in electricity prices
Treasurer Jim Chalmers is hopeful that the worst of Australia’s inflation crisis is in the rear view mirror before the release of new data later this week.
But the opposition has criticized the government for ‘underestimating’ the scale of the problem, accusing Dr Chalmers of having already started his May budget ‘spin’.
The latest inflation data, due to be released on Wednesday, is expected to show another rise in December.
Estimates from both the Treasury and the Reserve Bank suggest that inflation will moderate shortly after the expected peak.
Speaking to Sky News on Sunday, Dr Chalmers was quick to manage expectations that the estimates would result in immediate cost-of-living relief for Australians.
Australians have been warning that the cost-of-living crisis is far from over before another spike in inflation (pictured, shoppers at a Sydney Coles)
‘We still have a huge inflation challenge in our economy even as we get to the other side of the peak,’ said the Treasurer.
‘Inflation will be higher than we would like for longer than we would like. Thats the reality.
His comments come after a new Treasury analysis revealed that government intervention in the energy market has slowed the expected rise in electricity prices.
“We expect it to make a significant difference to these price increases that were forecast in the October budget,” said Dr. Chalmers.
“Our goal here is to try to … eliminate some of these price increases that we’re going to see in energy prices through 2023, a big part of our inflation problem.”
But the opposition has dismissed the Treasurer’s comments as ‘twist’, with Peter Dutton claiming that Dr Chalmers is setting the stage for the government to drop controversial stage three tax cuts.
“The treasurer is trying to put all sorts of twists on what will be in the May budget and trying to prepare Australians for the tax cuts to be removed,” he told Sky News.
“The fact is Australians are making it tough right now and it will get tougher in the next 12 months under Labour.”
Federal government intervention in the energy crisis has slowed an estimated rise in energy prices.
Treasurer Jim Chalmers (pictured) is hopeful that the inflation spike has passed, but warned that difficult challenges still lie ahead
It comes as the opposition intensifies its attack on the government on multiple fronts, including the Voice of Parliament.
On Sunday, Dutton denied that he was a “negative” when it came to the referendum to enshrine a First Nation’s voice in the constitution.
He called on Prime Minister Anthony Albanese to stop ‘being cute’ and confirm the government’s envisioned model for the body.
“If the prime minister had been upfront, direct and honest with the Australian public and said that if you vote for voice, this is what we will legislate, we would have the details, but you don’t,” Dutton added.
Opposition leader Peter Dutton (pictured) claims the treasurer is setting the stage for the government to drop controversial stage three tax cuts.