"ABS data confirms government spending continues to fuel inflation, and the Albanese government is playing a game of chicken with the Reserve Bank, and daring them to increase interest rates", said Shadow Treasurer, Tim Wilson.
"Yesterday the Reserve Bank Governor directly linked government spending to inflation, and this data confirms the Albanese government's spending addiction risks higher interest rates".
Mr Wilson's comments come in the wake of new CPI data from the ABS for month of June 2026 showing underlying inflation, the key measure that the RBA uses for setting the cash rate, remained at 3.6%, still well outside of the target band.
Underlying inflation has now been above the RBA's 2 to 3 per cent target band in 14 of the 17 quarters since the change of government. Underlying inflation strips away volatile items like fuel so it shows that inflation is running too hot, outside of the Iran crisis.
A range of indicators showed home grown inflation fuelled by reckless government spending continues to rise. Inflation of non-tradeables is up to 4.9%.
On core inflation, Australia's rate is higher than every G7 economy, as well as the Euro Area and key Asian economies like China and South Korea.
"The Reserve Bank Governor has flagged we have a domestic inflation problem, and it won't be fixed until governments stop borrowing from tomorrow to spend today", Mr Wilson said.
"Just last year, the Treasurer arrogantly claimed that Australia had 'turned the inflation corner'. He's right, inflation has gone up".
"While the Albanese government's inflation is going up, Australian households are going backward".
"The Albanese government's economic model is stoke inflation, tax inflation and then spend inflation in a vicious cycle that drives down living standards".
"No amount of blame-shifting from the Albanese government changes the fact that if the Iran conflict ended, inflation would still be too high".
"Any decrease in inflation is only occurring because Australian families are going without the essentials, not because the Government has stopped its inflationary spending agenda".
