NSW Premier Chris Minns has made thinly veiled criticism of federal Labor's spending approach, arguing all government levels must help combat inflation as the Reserve Bank raised interest rates and consumer prices accelerated. The criticism highlights growing tensions within the Labor Party ahead of NSW's 2027 state election, with some state MPs reportedly wanting Minns to distance himself from Prime Minister Albanese to avoid electoral damage from cost-of-living pressures.

The RBA raised the cash rate by 25 basis points to 4.6 per cent on Tuesday—its highest level since 2011—whilst inflation rose to 4 per cent in the year to August 2026, up from 3.5 per cent in July. Minns contrasted his government's record, claiming NSW has had the lowest spending growth increase of any Australian jurisdiction over four years, and highlighted the state's reaffirmed credit rating with recent upgrades. The Premier stopped short of directly attacking the federal government but made clear his belief in fiscal discipline, whilst RBA Governor Michelle Bullock pointed to weak productivity as a key economic concern rather than directly blaming government spending.