Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Farrell. Core inflation is higher in Australia than in six of the seven G7 countries, and last week the RBA governor said that inflation was homegrown, saying that prices are rising strongly for the majority of the goods and services that we all consume. Yet, the very next day, the Prime Minister continued to insist that inflation was coming from overseas. Who is correct: the RBA governor or the Prime Minister?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Hume for her question. Governor Bullock did make some comments last week. In particular she made it clear that inflation in this country under the policies of the Albanese Labor government is moderating, but it has been more persistent overseas, and it's expected to be more persistent here as well. In other words, she acknowledges that the inflation situation is moderating, and I'd put it to you, Senator Hume, that it's because of the policies of this government. The reality is, as Governor Bullock made clear, that inflation has been more persistent overseas, and it's expected to be more persistent here as well.

There are a few parts of the inflation challenge—

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

Point of order on direct relevance: I appreciate that the minister is referencing the RBA governor's remarks in a broad sense and other parts of her remarks, but the question asked went specifically to whether or not it is homegrown inflation—that element of Governor Bullock's remarks. I ask the minister to be drawn to that element of the governor's remarks. Is it homegrown? Is the governor right, or is the Prime Minister right?

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Birmingham. You are correct. The Minister was referring to the first parts of that question, which he is entitled to do. I'll draw his attention to the second part of that question. I also note that interjections are disorderly, but the minister is also able to reference those. Minister Farrell.

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

Thank you, President. Governor Bullock has also said that our budget strategy is very helpful and very positive and that the ABS has shown that our cost-of-living policies have taken a half a percentage point off inflation. The government are focused on productivity-enhancing investments and supporting workforce participation so that we can grow supply and ease inflation pressures into the future. I know that the opposition don't like all of those things happening, but they're the things this government is doing—all of the things that you didn't do in government. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Minister, is inflation now a homegrown problem?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Hume for her first supplementary question. It's fair to say that inflation peaked here lower and later than in most G7 nations, so its moderation is a bit behind. The most recent IMF World Economic Outlook stated that they expect the return to target to take until at least 2025 in most nations. Treasury expects inflation to return to target next financial year, so the return to target is expected to be in line with most other nations. Our policies—

Sue Lines (President) Share this | Link to this | Hansard source

Senator Farrell, please resume your seat. Senator Birmingham?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

President, I've a point of order on direct relevance. It'd be hard for a senator to have a more tightly worded question than Senator Hume's six-word question: 'Is inflation now a homegrown problem?' Senator Farrell is going vaguely around issues of inflation in every possible way but not addressing the actual question that Senator Hume asked: 'Is it a homegrown problem?' They were the words of the RBA governor.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Birmingham, as you know, I do allow the leaders some latitude, but that was verging onto a statement. Minister Farrell, I draw your attention to Senator Hume's question.

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

Look, I'm simply trying to explain that inflation has been a worldwide issue. It hasn't just been an Australian issue; it has been a worldwide issue. We are dealing with it in the absolute best way we possibly can. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Over 12.8 million Australians are more stressed about their finances this year compared to last year, an increase of 10 per cent. Of all Australians reaching out for help from charities, almost half are doing so for the first time. A submission to the cost-of-living committee said: 'I'm not buying as much fresh produce these days. Due to the cost of fuel I can't afford to spend Christmas with my family. Most of them are in regional New South Wales and I am in Rockhampton.' Is this the sort of pain for Australians that the Prime Minister meant when he said in January that his new year's resolution was to address the cost of living?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Hume for her second supplementary question. No.