Kevin Hogan (Page, National Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source

My question is to the Treasurer. AMP Chief Economist Shane Oliver and many other economists have warned that record government spending is adding to inflationary pressures and keeping prices higher for longer. Treasurer, why is this government making Australians pay more for mortgages, groceries, fuel and electricity?

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

I'll deal with the parts of the question in reverse order. Inflation was running much higher when he was in government than it is under us, but the substantive part of the question—

Kevin Hogan (Page, National Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Twelve interest rate rises, Jimmy—all under you!

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The member for Page has asked his question. We're just going to show each other respect. The Treasurer will return to the question.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to 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.