Australia’s Reserve Bank Governor, Michele Bullock, said inflation reflects total demand from both government and private spending, which is growing faster than supply. The article argues this undercuts Finance Minister Katy Gallagher’s claim that government spending is not causing inflation, and matters because the RBA is raising rates to curb demand.

The cash rate has reached 4.6 per cent after four rises this year, its highest level in 15 years; Bullock noted that rates were already raised in February, before the Iran conflict, indicating domestic inflation pressures predated the oil shock. Treasurer Jim Chalmers acknowledged that the conflict is not the only factor and that government has a role, while the article criticises other senior ministers’ responses; it is an opinion piece by Peter van Onselen.