James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Following yesterday's confirmation of a shock rise in inflation to 3.2 per cent, economist Saul Eslake said:

Today's September quarter #inflation numbers were an absolute shocker, and have ruled out whatever chance there was of the Reserve Bank of Australia cutting its #cashrate at next weeks' Monetary Policy Board meeting.

The ABC's Alan Kohler said yesterday's numbers were 'generally seen as a very ugly report', noting that the annual rate for the last six months was actually 4.2 per cent and that the odds of a November rate cut were now zero. Minister, do you agree with RBA governor Michele Bullock that these numbers, fuelled by out-of-control government spending, are a material miss which will hurt Australian mortgage payers?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I appreciate the question from Senator Paterson at five o'clock. Some three hours in, we get to dealing with the shadow finance spokesperson on matters of the economy. I do agree that Senator Paterson routinely verbals the Reserve Bank governor, and he's done that again today. As Senator Paterson knows, we've got inflation down and debt down, real wages are growing, unemployment is low and interest rates have fallen three times. There is more work to do, and this is a government that's rolling its sleeves up and doing it.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Paterson, first supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Yesterday's figures confirm electricity costs annually have risen 23.6 per cent. KPMG's chief economist, Brendan Rynne, said:

We knew there was going to be an uptick in inflation once electricity rebates were wound back but unfortunately today's spike is much higher than any of us anticipated.

Will the minister finally admits the government's promise to reduce power prices is now in tatters, causing more pain to Australian households?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The government will always support Australian households with cost-of-living pressure, and those opposite are the ones that have voted against it time and time again.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Paterson, second supplementary?

James Paterson (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Since the government brought down its high-spending, high-deficit budget, annual inflation on food has jumped to 3.1 per cent, housing to 4.7 per cent, health to 4.2 per cent, education to 5.3 per cent and even pet services to five per cent. Citibank economist Josh Williamson said, 'All major expenditure groups barring one rose in the September quarter, suggesting price pressures were being felt across the economy.' Will the government change its reckless spending policies, which are driving up prices across all essential aspects of life? (Time expired)

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We know what those opposite want to do. They want to cut Medicare. They want to cut payments to people. They want to cut pensions. They want to cut the Public Service. Nothing has changed from the shambles of an opposition that went to the last election. They keep going on about out-of-control spending; what they don't say is Medicare, pensions and payments will all be cut if they ever get back into government again. This government takes a responsible approach and will continue to do so.