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

I thank Senator Grogan for her question and her interest in the Australian economy and the impact that some of the inflation challenges are having on Australian households. Today, the independent Reserve Bank Board has decided to leave the cash rate unchanged at 4.35 per cent. This is a welcome reprieve for millions of Australians, especially in the lead-up to Christmas, when we know budgets are tight. This decision follows recent news that inflation fell further in the month of October to 4.9 per cent, substantially lower than the 6.1 per cent it was when we were elected.

While inflation is moderating, it is still too high and we understand that many Australians are doing it tough. Inflation and cost of living are the biggest challenges facing Australians right now. That's why it's been a real focus of the Albanese government and why we are rolling out the $23 billion in cost-of-living relief that has been carefully calibrated to make sure that it eases pressure on households but doesn't add to inflation. In fact, two of the measures, those in relation to child care and our energy bill relief, actually put downward pressure on inflation, something that has been acknowledged by the ABS. It confirmed that our cost-of-living policies are putting downward pressure on inflation.

Since coming to government our economic plan has been focused on providing targeted cost-of-living relief, fixing the budget and investing in skills, housing and energy to lay the foundations for future growth. Our economic and fiscal strategy has been welcomed by credible organisations and commentators, who have seen the decisions we have taken about showing spending restraint, returning significant revenue upgrades to the budget and delivering a surplus. I will come back to that. (Time expired)