Australia Inflation Hits 3.8%, Highest in 7 Months

Is this a temporary spike, or a crushing consequence of Labor’s spending policies?

Published NOV 26

Australia Inflation Hits 3.8%, Highest in 7 Months

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Above: A collection of Australian $50, $20, $10 and $5 banknotes, as well as dollar coins, arranged for a photo in Newcastle, Australia, on March 25, 2025. Image credit: Roni Bintang/Getty Images

The Spin

Australian Labor Party narrative

While Labor is not pleased with current inflation levels, it is worth noting that inflation remains manageable and far below the peak rates suffered under the Liberals. The increase was primarily due to temporary spikes from state energy rebates and other short-term factors. Despite this, Labor will continue to support families with the cost-of-living cutting measures they need.

Jim Chalmers on X

Liberal/National Coalition narrative

Labor’s reckless spending spree has pushed inflation beyond the Reserve Bank’s target, crushing hopes for any further interest rate cuts. As government expenditure outpaces economic growth, it drives up grocery bills, insurance, electricity bills and housing prices, all while mortgage holders pay AU$1,800 more every month than they did when the Liberals left power.

Sussan Ley on X