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

We've got a long way to go in this fight against inflation, but in the last day or two we've received some glowing endorsements of the inflation-fighting plan that is key to our approach to the economy. We are making encouraging and welcoming progress in the fight against inflation, even as we recognise that people are still doing it tough.

Our strategy is responsible cost-of-living relief to take the edge off cost-of-living pressures without adding to inflation; it's budget repair; and it's investing in the supply side of the economy. As I said, this has received some glowing endorsements in the last day or two.

Overnight, the OECD talked about the importance of our energy plan to taking some of the edge off electricity prices. Deloitte Access Economics talked overnight about the importance of our fiscal strategy in this fight against inflation. The economists at Westpac said that our policies are putting downward pressure on inflation. Yesterday the ABS made it clear in their data release that our policies are taking the edge off electricity and rent and in other ways. The IMF, not that long ago, said that our budget strategy is helping in the fight against inflation. When Fitch reaffirmed our AAA rating, they said that our fiscal policy is working with monetary policy in important and helpful ways. And when the Reserve Bank governor was asked at estimates about our budget strategy, she said it was very helpful when it comes to the fight against inflation.

Government policy is not the only reason why inflation is moderating, but it is an important reason why inflation is moderating. All of these people who have backed in our strategy have made that clear. It's a key reason why the monthly inflation number came down from 5.6 to 4.9. It's a key reason why quarterly inflation, when it was 2.1 under those opposite, is almost half that now, at 1.2. The trim mean under them for inflation was 1½ in March before the election; it's 1.2 now.

Here's a hint for the shadow Treasurer: 1.2 is smaller than 1.5, genius! So I say to the House: we're not getting carried away by the improvement in inflation. We know there's a long way to go. We know people are still doing it tough. But our policies are clearly helping, and others are making that very clear.

The other thing that's clear is that, if they had their way, electricity prices would be higher, rent would be higher, inflation would be higher and wages would be lower. We're working for Australia. Our budget strategy is making welcome progress in this fight against inflation as we work to clean up the mess that those opposite left behind. The shadow Treasurer was given an opportunity to sketch out an alternative today, and he didn't have one. (Time expired)

See this speech in context