Wednesday 11 November, Money & Work

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✓ CrikeyMoney & Work1 min read

Coalition's inflation claim uses different maths than other countries

Kevin Hogan's inflation claim uses different measures than other countries actually use.

Coalition assistant treasury spokesperson Kevin Hogan said Australia has the highest core inflation at 3.6% among advanced economies. Luke Hartigan told Crikey that each country uses different ways to leave out unstable prices.

The US takes out food and energy. The UK leaves out housing, energy, food, alcohol and tobacco.

Australia removes only extreme price moves that change each quarter. When using the same headline inflation measure across all countries, Australia is at 4.3%.

It is still highest but not as dramatically higher than Hogan's comparison suggests. Hartigan pointed to two possible reasons for stickier inflation: the RBA raised rates more slowly after the pandemic, and Australia has stronger economic growth.

3.6% in September
Hogan's cited core inflation
2.6%
US core inflation in comparison
4.3%
Australia's headline inflation
Luke Hartigan, Sydney University
Expert source

Why it mattersHow politicians measure inflation shapes what voters think about government economic management. Accurate comparisons matter.

AustraliaAs Australians feel the pain of high interest rates and inflation, the debate over who caused it determines which party gains political ground in 2026, and whether you believe Labor or the Coalition on the economy.

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