From 2h agoKey events1h agoEconomy expanded a surprisingly weak 0.2% in the March quarter, ABS says1h agoSenate committee receives list of PwC employees but won’t release publicly: Pocock2h agoLightning, rain leave thousands in SA without power2h agoReserve Bank governor warns against ‘higher wage outcomes for everybody’3h agoCheques to be phased out by the end of the decade, Chalmers says3h agoTreasurer outlines strategic plan to improve payment system3h agoRBA’s Philip Lowe says path to economic soft landing likely to be bumpy3h agoRecord demand in NSW emergency departments4h agoGallagher says government needs to ‘rebalance the public service’ over consultants5h agoSevere weather warnings for Victoria and South Australia5h agoMurray Watt to announce disaster funding6h agoKPMG to be questioned on integrity at Senate committee6h agoWelcomeFilters BETAKey events (13)RBA (17)Australia (11)Philip Lowe (11)Jim Chalmers (8)Sydney (7)31s ago22.28 EDT
Chalmers says it’s inflation, not government decisions, which is causing the cash rate to go up:
Rates went up yesterday not because of the Budget, not because people on the minimum wage are getting paid too much, but because these inflationary pressures in our economy are more persistent than we would like. We see that again in the national accounts figures and in all of the ways, particularly that households are responding to the price pressures, that they are under.
2m ago22.27 EDT
‘People are under pressure,’ says Chalmers
Chalmers sums up the economic situation like this:
So we knew that this was going to be a difficult year, given the challenges coming at us from abroad. Here at home as well. And today’s results really confirms those two things, the people are under pressure and the global economic conditions are not helping either.
Updated at 22.28 EDT3m ago22.26 EDT
Chalmers says there are also “welcome signs” business investment is picking up as the impacts of global supply shocks recede.
New business investment grew 2.9% in the quarter, partly a consequence of the easing of some of these supply chain pressures. It’s meant more businesses have been able to get more capital in place and their businesses.
We also saw some significant activity in renewable and electricity projects on the coast, something that we support and we welcome.
And while we are seeing commodity prices [dip] a little bit, we are still getting really good prices for the things that we sell.
5m ago22.23 EDT
‘Inflation is moderating’
Today’s numbers confirm inflation is moderating, Chalmers says:
The data also confirms the view that we’ve had for some time which is inflation is moderating from its peak.
Not as fast as we would like. But it will hang around for higher than we’d like for longer than we like but there is more evidence in this data today that inflation is moderating from its peak of around Christmas time.
The national accounts measure of consumer prices rose by 6.5% over…
2023-06-06 21:24:29
Link from www.theguardian.com
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