Treasurer Jim Chalmers has flagged another round of budget savings before Christmas as inflation rises again and mounting cost-of-living pressures continue to squeeze Australian households.
Speaking at the Australia Institute’s Bernie Fraser Oration, Dr Chalmers confirmed the government was preparing a new savings package for its mid-year update but didn’t reveal any figures or which areas would be affected.
He pointed to the “absolute disaster” of a war in the Middle East as a major factor pushing up inflation and interest rates, while arguing government spending wasn’t the main driver of rising prices.
“We also know that budgets aren’t the primary drivers of prices in our economy,” he said.
“In fact, we’ve seen inflation come back at the same time as public demand growth has halved and private demand growth has tripled compared to the year before.”
Dr Chalmers said the government could still help bring down inflation through its budget decisions.
“That’s why there’ll be another new savings package by the end of the year in the mid-year update.
“We’re working on that now, and that’s why I won’t pre-empt it too much here,” he told the audience.