The Consumer Price Index released by the Australian Bureau of Statistic today shows inflation surged over Christmas, confirming that under Labor the cost of living is getting worse, not better for Australian families.
The data shows inflation accelerated to 3.8 per cent in December, leaving Australian households paying more at exactly the wrong time of year.
After nearly four years of Labor, Australians are paying more for everything:
- Insurance is up 39 per cent.
- Energy up 38 per cent
- Rents up 22 per cent
- Health up 18 per cent
- Education 17 per cent
- Food is up 16 per cent
Housing and rents are now a key driver of inflation, and Labor’s housing and migration settings are worsening supply pressures and feeding the cost of living crisis.
For families facing back to school costs, this is a serious blow.
Parents are paying more for uniforms, textbooks, lunches, transport, groceries and power, while mortgage repayments continue to bite.
Opposition Leader Sussan Ley said the figures confirmed what families are feeling every day.
“Families are doing everything they can, but under Labor the cost of living is getting worse, not better,” the Opposition Leader said.
“This is not abstract economics, it is the weekly shop, the power bill and the mortgage, and families are paying more because this government refuses to get its spending under control.
“Every extra dollar families are paying at the checkout or on their power bill is a reminder that Labor has lost control of the economy.
“Hardworking Australians expect their government to ease pressure, not add to it, but under Labor the cost of living crisis is deepening.”
Deputy Leader and Shadow Treasurer Ted O’Brien said the ABS data showed inflation was being driven by government policy.
“While the Treasurer is desperate to shift the blame, there is no doubt this Jimflation crisis is homegrown, Mr O’Brien said.
“With inflation in services and non-tradables both accelerating, the blame lies squarely with the government.”
“Government spending is growing 13 times faster than the Coalition budgeted for and has reached its highest level outside recession in 40 years.
“This government is competing with everyday Australians for goods and services, pushing up the price of everything.
“This renewed inflation will further erode real wages, increase income tax burdens and add pressure to interest rates.”
The December quarter trimmed mean inflation figure, the measure the Reserve Bank watches most closely, jumped to 3.4 per cent, well above the Reserve Bank’s most recent forecast.
The Reserve Bank has already made clear that rate cuts are off the table and today’s result raises the real risk of another interest rate increase when the Board meets on Tuesday.
The average mortgage holder is already paying around $21,000 a year more in interest than under the Coalition, and that burden could rise even further.
After nearly four years of Labor, Australians were promised relief but are being asked to brace for more pain.
When Labor spends, Australians pay.