Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Hansard source

I'm asked about the views of economists about what's contributing to the inflation pressures which are in our economy. Let me read you three examples of economists who have pointed out, as has the Reserve Bank today, that the pressure on the economy, the upward revision, is because of faster-than-expected private demand at the same time as public demand taking a back seat, actually retreating. Diana Mousina from AMP said just this morning:

… government spending has peaked and the growth of government spending is going to add less to inflation …

Belinda Allen from the Commonwealth Bank said, 'The public sector's contribution to growth has eased significantly.' Luci Ellis from Westpac said:

Public sector demand growth is slowing and indeed was negative over the first half of 2025.

If the honourable member doesn't want to take those economists' word for it—I acknowledge that there are, as always in the economist profession, contested views about these sorts of things—I encourage him to read the Reserve Bank's statement today, because what that makes clear is that the pressure on inflation is coming from private demand. I know that it's terribly embarrassing for the member, who wrote this question before the statement came out, but the statement has made it really clear where the pressure is coming from and so does the statement on monetary policy. I encourage him to check that out. He should have read that before he asked the question, but, in the absence of that, now is as good a time as any. Economists have got a range of views about the contribution that's being made to inflation, but the Reserve Bank has made their view very clear.

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