Jon Sullivan (Longman, Australian Labor Party) Share this | Link to this | Hansard source

My question is also to the Treasurer. Will the Treasurer outline for the House the consumer price index data released today and what it means for the government’s economic policy approach?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

The September quarter CPI data were published today, and as expected it hit a high of five per cent. Of course, this reflects very substantial price pressures that Australian households have been bearing for a considerable period of time. As we are aware, inflation hit a new 16-year high in October, November and December last year. In the September quarter it has gone even higher.

Underlying inflation is now 4.7 per cent. It reflects the build-up of prices over the last couple of years, and in particular the impact of housing prices and fuel prices. But the good news is that it is expected to abate over the next year. We will be publishing our forecast for the future of inflation in the Mid-Year Economic and Fiscal Outlook, which will be due within the next month. But this figure in no way reduces the government’s commitment to put in place a range of policies which will enhance capacity in the Australian economy and mean that we can grow strongly with low inflation.