In an interview with ABC’s 7.30 program broadcast the previous night, Treasurer Jim Chalmers said Australia’s economy was performing remarkably well given extraordinary global instability. He also acknowledged that inflation remained high and linked additional price pressure to the war in Iran.
Chalmers called the conflict “a disaster for Australian families,” saying people were paying a heavy price for decisions made elsewhere. He said the government’s task was to manage the budget and economy responsibly while providing cost-of-living assistance in an affordable way.
The treasurer also appeared to reject a suggestion from Reserve Bank of Australia governor Michele Bullock that unemployment might need to reach 5 per cent to bring inflation down. Chalmers said past experience showed inflation could be reduced while maintaining very low unemployment.