Part 2/9:
However, economic experts urge caution. Adam Kryton, chief economist at the Institute of Public Affairs, argues that the narrative spun by Treasury overlooks critical nuances. He emphasizes that while headline figures are low, the core inflation rate hovers around 2.7%, which is roughly double pre-pandemic levels.
This persistent inflation has serious implications: at around 3% annually, prices are doubling approximately every 24 years, underscoring that inflation remains an ongoing challenge. Kryton advocates against the Reserve Bank of Australia (RBA) cutting interest rates, citing concerns over housing affordability and the weak relationship between short-term interest rates and inflation.