Inflation illusion
Treasurer Jim Chalmers is upbeat about the latest inflation figures. But economists are less confident, warning that volatile data and temporary factors have led us astray before.
Within about half an hour of the Australian Bureau of Statistics publishing the latest monthly inflation figures, Jim Chalmers was on social media sharing the good news.
“Monthly inflation is now at a four-month low and underlying inflation has hit a six-month low,” he said in a post, adding that “our policies are helping” but the government was “not complacent” and wants inflation to come down faster.
His other public communications emphasised that the government’s other cost of living supports, including the energy bill relief, “are making a meaningful difference” in the fight against inflation.
Economists are far less confident. And despite this being the final monthly inflation data before the Reserve Bank’s September meeting, they’re expecting the central bank to feel as cautious about it as they are.
