Greg Jericho
Chief Economist

It’s his standard line despite O’Brien remaining a fan of nuclear power, which would require the mother of all government spending campaign.

But still. As I have noted previously, the RBA in its November statement on monetary policy revised down the impact of public spending on the economy.

And the reality is that the current growth of public demand is pretty low historically speaking, and much less than the LNP spent once they worked out austerity was a dud.

As for inflation, the real driver of inflation was electricity was purely because October last year was the peak of the state and federal energy rebates, so in comparison to then things look a lot more expensive.

15% of all the increase in inflation over the past year is from electricity, and over half came from just 8 items.