Assistant Treasurer denies cost of living handouts drove inflation higher
The federal government has denied contributing to rising inflation, claiming an interest rate rise was inevitable.
The RBA yesterday lifted the cash rate by a quarter of a per cent to .35 per cent in a move expected to hit workers hard.
But Assistant Treasurer Michael Sukkar says he believes most Australians knew a rise had to happen.
“The cash rate, at the lowest level it’s ever been for the last 18 months, wasn’t going to last forever,” he told Neil Breen.
“I think households are in a position where they’ve prepared for this.”
Neil suggested $250 government handouts could risk boosting spending, which the RBA is currently trying to mitigate but Mr Sukkar disagreed.
“When we announced our cost of living package, which did include that $250 payment, we also included a reduction to the fuel excise,” the Minister said.
“That has a downward impact on inflation.
“The impact of that modest support is not something that has caused this problem.”
Press PLAY below to hear Michael Sukkar weigh in on Labor’s economic plan
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