Australia’s centre-left Labor government has pledged to include 14.6 billion Australian dollars in the federal budget for cost-of-living relief for families and businesses, promising it will not stoke inflation.
The plan is designed to directly ease price pressures and inflation, the federal government said, which retreated slightly in the first quarter but still sits near 30-year highs of 7 percent.
Treasurer Jim Chalmers says the centrepiece of the budget will be cost-of-living relief that doesn’t add to inflation.
Chalmers stated his budget would be restrained on spending so as not to add to inflationary pressure while also giving some relief, after the Reserve Bank of Australia last week stunned markets with a rate rise, defying trader expectations for an extended pause.
The RBA warned that risks to inflation were on the upside given low productivity growth, rising energy prices and a surge in rents.