Rising inflation demands direct action, not interest rate hikes

The government must tackle rising inflation directly and the RBA should not raise interest rates, said ACOSS following today’s release of the latest inflation figures.

“Rising inflation is a pressing concern but there are better ways to deal with it than blunt interest rate rises which destroy jobs,” said ACOSS CEO Cassandra Goldie.

“As the cost of living continues to rise, the government must not leave the fight against inflation to the RBA.

“History and evidence show that hiking rates eventually lead to job losses, pushing many people, already on the brink, into even more challenging circumstances.

“We urge the government to implement direct measures to address inflation such as stronger regulation of skyrocketing rents and further measures to reduce energy costs.

“Right now, thousands of people are making impossible choices between food or medicine, between heating their homes or keeping the lights on.

“As we grapple with inflation, let’s ensure that our solutions do not exacerbate the struggles of the very people that need the most support.”

ACOSS is calling on the government to:

  1. Implement stronger regulation of the private rental market to protect against exorbitant rent increases.
  2. Take further action to reduce energy costs by investing to make homes energy efficient for people receiving low incomes.
  3. Take further action to reduce out of pocket costs such as child care and dental health services.
  4. Invest in a jobs and training offer for the 500,000 people unemployed long-term to improve their employment prospects and ease labour shortages.
  5. Protect people on the lowest incomes who are facing destitution amid the rising price of essentials, including fixing the adequacy of income supports.