Labor is losing control of the economic narrative as cash-strapped households look for someone to blame | Tom McIlroy
News Source
β’Fri, 30 Oct 2026 14:00:15 GMT
π° What Happened
Guardian Australia's Tom McIlroy argues Labor has lost control of the economic narrative after headline inflation hit 4.3% and trimmed mean inflation rose to 3.7%, with transport costs up 8.7% and housing up 5.2% over the year. A rate rise at Tuesday's Melbourne Cup-day Reserve Bank meeting to 4.85% would be the fifth this year and the highest level in 18 years.
π The Backstory
KPMG chief economist Brendan Rynne noted that consumer prices have risen about 30% since the start of the pandemic while wages have climbed only around 20%. A Guardian Essential poll found 32% of voters blame government spending for the cost of living, well ahead of global events or supermarket price gouging, and Opposition Leader Angus Taylor has announced more than $30bn in proposed Coalition cuts.
π― Why It Matters
Chalmers wants spending cuts in December's mid-year budget update but faces cabinet pressure for more outlays, and Albanese has ruled out ripping billions from health, education and essential services. The squeeze is compounded politically by the prime minister's trip to Antigua for the Commonwealth summit while households absorb another rate rise.
Guardian Australia's Tom McIlroy argues Labor has lost control of the economic narrative after headline inflation hit 4.3% and trimmed mean inflation rose to 3.7%, with transport costs up 8.7% and housing up 5.2% over the year. A rate rise at Tuesday's Melbourne Cup-day Reserve Bank meeting to 4.85% would be the fifth this year and the highest level in 18 years.
KPMG chief economist Brendan Rynne noted that consumer prices have risen about 30% since the start of the pandemic while wages have climbed only around 20%. A Guardian Essential poll found 32% of voters blame government spending for the cost of living, well ahead of global events or supermarket price gouging, and Opposition Leader Angus Taylor has announced more than $30bn in proposed Coalition cuts.
Chalmers wants spending cuts in December's mid-year budget update but faces cabinet pressure for more outlays, and Albanese has ruled out ripping billions from health, education and essential services. The squeeze is compounded politically by the prime minister's trip to Antigua for the Commonwealth summit while households absorb another rate rise.