What’s really fueling inflation and keeping interest rates high? | The Business | ABC News [Video]

Consumer spending has been running hot, but for months the opposition has been insisting that government spending is fueling inflation.
Under questioning from Labor and Liberal MPs in Canberra at Senate hearing, RBA Governor Michelle Bullock poured cold water over that idea. Despite previously noting public sector demand was running too hot, Ms Bullock said the central bank and the Albanese government are “completely aligned” on keeping unemployment as low as possible, while also tackling inflation.
There’s now some evidence Australians are pulling back spending under the pressure of 13 interest rate rises. Despite tax cuts hitting peoples’ pockets in July, consumers are opting to save them.
The RBA Governor has warned it’s “premature” to be thinking about interest rate cuts this year, but that its strategy could change depending on economic conditions.
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