Dave Sharma (NSW, Liberal Party) Share this | Hansard source

The monthly inflation figures are out for the month of May, and it is not good news for households or Australians. Inflation is running at an annualised rate of four per cent, and it is actually accelerating. It was 3.4 per cent in February, 3.5 per cent in March, 3.6 per cent in April and now four per cent. Inflation is not under control; it's getting worse. Is it any wonder? From the Labor government, in their last budget, we saw a 4½ per cent increase in real growth in spending and an additional stimulus put into the economy of $44 billion, or two per cent of GDP, in a single year. Of a windfall of revenue—due to high commodity prices and bracket creep—of some $365 billion since this government came to office, over $300 billion has been spent. This led organisations such as the Australian Financial Review to describe the last budget as the most irresponsible budget in recent memory.

At the RBA meeting last week, the cash rate was kept on hold at 4.35 per cent, with the RBA saying that demand was too strong and that recent budget outcomes, including state Labor and federal budgets, are having an impact on demand and slowing their pathway back. Inflation is now getting further away from the RBA's two to three per cent target. This is an Australian phenomenon. In the US, inflation is running at 3.3 per cent. In the eurozone area, it's 2.4 per cent. In the UK, it's two per cent. In Canada, it's 2.9 per cent. But, in Australia, our figure has a 4 in front of it. Let's break down what this means. It means things are costing more for households. It means that interest rates are going to stay higher for longer, meaning you're paying more on your mortgage. And we're seeing Australians paying more tax. All up, this government's fiscal and budget strategy is a complete failure.