The key line in Canavan's tweet appears to be "You don't cut inflation by increasing government spending." The government seems to be targeting its spending directly at keeping inflation down with rent assistance and power bill subsidies aimed at directly reducing headline inflation. They're banking on recipients of those subsidies not spending elsewhere and ramping up demand (inflationary) in the process. Who is right (Canavan or Chalmers/treasury) about whether government spending can be used to reduce inflation might determine the outcome of the next election.
