New numbers show inflation has increased 6.1 per cent over the past year and highlight the difficult circumstances facing Australian workers and families.
This high and rising inflation is not surprising but it is still confronting.
Australians know the pressure that inflation imposes on household budgets – they see it and feel it every time they visit the supermarket and pay the bills.
Higher inflation has come with higher interest rates and the independent Reserve Bank has told us they are set to rise even further.
The Government has been up‑front with the Australian people about the challenging economic circumstances Australia is facing.
After a decade of wasted opportunities and wrong priorities, we are dealing with high and rising inflation, rising interest rates, flatlining productivity and falling real wages – and a trillion dollars of debt without an economic dividend to show for it.
The failure of the previous government to address supply‑side issues is compounding the inflation challenge – which is why we are taking action to repair the energy market, increase workforce participation and address skills shortages.
We expect inflation will get worse before it gets better, but it will get better. I will have more to say about this tomorrow in my Ministerial Statement to the Parliament.
We didn’t create these problems but we accept responsibility for addressing them.
That’s why we’re working hard to deliver on our commitments to boost the capacity of the economy and reduce the cost of living, and why we fought for an increase to this year’s minimum wage which will impact around 2.8 million Australians.
It’s why we’re making meaningful investments in cleaner and cheaper energy, cheaper childcare, skills, the digital economy and manufacturing, and progressing our waste and rorts audit.
It’s also why one of our first acts as a new government will be to convene a Jobs and Skills Summit to bring together business, unions, civil society and governments to find solutions to some of our shared economic challenges.