Inflation Jumps In May, page-90

I think there are a number of issues.

• Immigration is causing rent and house prices to rise significantly.
• The rise in population is increasing government spending in order to keep infrastructure up to date, also supply and demand changes are impacting prices.
• Fuel prices are a significant factor as it contributes to all prices as a component of freight as well as our own personal use. Government benefits from this. They could remove some excise to ease cost burdens
• Prices could increase significantly in July as that is when most companies do salary reviews, review their pricing and spend money that becomes available in their new budgets. Many people also receive tax refunds and spend them.
• Government spending is significant. The federal budget would be inflationary to me. We are in a cycle where cost of living is increasing so government is now using cost of living measures to relieve pressures, which is now increasing inflation as people have more available. It is a cycle that while necessary from humanitarian requirements needs to be broken.
• Some states like Qld are also inflationery. The temporary electricity rebates, 50 cent transport, and sporting vouchers will help in a very short term, they do not change underlying costs and will have an impact on inflation.

The cost government controls such as energy are out of control.

The government needs to look at cost of living as a priority, rather than as a side issue.