Labor backbencher warns party spending fuels inflation
Rob Mitchell, a Labor backbencher, tells his own party that poorly targeted spending is worsening inflation rather than fixing cost-of-living pain.
Federal Labor MPs worry the Albanese government's spending is making inflation worse. Rob Mitchell represents the Melbourne seat of McEwen.
On Friday, he warned his colleagues that cash handouts without ties to productivity are wrong. The Reserve Bank backed him, saying inflation comes mainly from domestic factors.
Goods and services made in Australia drive inflation more than imports do. Official data shows homegrown inflation at 4.5 per cent, while imported inflation is only 2.9 per cent.
Mitchell backs spending on infrastructure and childcare. But he said all ministers must "keep an eye on things" and find savings.
Opposition treasurer Tim Wilson fired back that Labor has no "real sense of constraint." He said the government should run surpluses, not deficits.
- 4.5 per cent
- Domestic inflation rate
- 2.9 per cent
- Imported inflation rate
- McEwen in outer Melbourne
- Mitchell's seat
- Fourth rise
- Rate rises this year
Why it mattersAustralia's cost of living stays high as long as inflation stays above the RBA's target, which means interest rates will likely keep rising. Voters care whether their government is making things better or worse.
AustraliaThe RBA just lifted rates to a 15-year high of 4.6 per cent and is expected to raise again in November. Every rate rise makes mortgages, car loans, and credit card bills more expensive for Australian households and businesses.
✓ Claims checked against the source. checked 1 h ago
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