Inflation: Chalmers Blames Demand, Not Spending

0:00Here's more Adelaide news for March 17th. Treasurer Jim Chalmers says inflation pressures in Australia come from strong private demand and the widening Middle East conflict, not government. Spending? The Reserve Bank raised interest rates for the second time this year, lifting the cash rate to 4.1% with a narrow 5-4 vote on Tuesday. Chalmers promised more budget savings in May to tackle the issue. He stressed his team is hunting for cuts to ease the strain without blaming public spending. Reserve Bank Governor Michelle Bullock explained the split vote was about timing, not whether to hike. The board sees demand outpacing supply, worsened by the conflict, shedding a key oil route. Economists like Westpac's Lucy Ellis say a third hike in May looks less certain now. They warn ongoing war could push oil above $150 USD of barrel, adding over 80 cents a liter to petrol and rippling through. Prices. Still, Australia's job market holds strong.

1:02Officials worry a global slowdown from high energy costs could hit here too, prompting a rethink on rates to avoid recession. Support for this episode comes from our sponsor, see the description. Some travel miles to find peace. I just climb into bed and listen, S-O-L-I-SOLY-PILLOW.com.