When the Senate inquiry,initiated by the Greens with support from Labor,wasannounced in December,a Woolworths spokesperson said the company was working with suppliers to “sensitively manage economy-wide inflationary pressures”.
“We know Australians are feeling the strain of cost of living and we are working to deliver relief in their weekly grocery shop,” the spokesperson said at the time.
Coles said last month that the company was “always exploring ways to reduce prices on the products we sell”,noting it also faced inflationary pressures.
At a press conference last week,Prime MinisterAnthony Albanese said he had asked the Treasury and Finance departments to develop cost-of-living policy proposals for cabinet to consider in the lead-up to this year’s budget.
“Our priority will be to provide cost-of-living relief whilst taking pressure off inflation,” Albanese said.
Chalmers said on Monday that the government had three economic priorities for the year ahead:“cost-of-living relief which takes some of the edge off inflation without adding to it;strengthening our economy by investing in housing and energy and skills;and thirdly,getting the budget in better nick.”
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Speaking at his first press conference of the year,Chalmers added that “if there’s more that we can responsibly do to help people deal with these cost-of-living pressures in the budget,then we will obviously consider that between now and then”.
He said the economy faced significant challenges including high interest rates,global conflict,persistently high inflation and natural disasters such as the floods in Queensland.
“The human consequences of this heavy weather are what matter most,” said the treasurer,whose electorate of Rankin covers the southern suburbs of Brisbane. “But there will be consequences for our economy and for our budget as well.
“We will get a clearer picture of the economic and budget consequences of these natural disasters in the coming months.”
Chalmers released Treasury data showing aggregate wages grew 4 per cent in the year to the September quarter,the fastest annual growth since 2009.
“We’ve seen the fastest wages growth in 15 years,and what these new numbers show is that people on the lowest pay are getting the biggest percentage increases,” he said.
“Wages growth is absolutely central to our cost-of-living plan,and these new numbers show that we’re making welcome and encouraging progress. But we’ve got much more work to do throughout the course of 2024.”
Opposition Leader Peter Dutton said Australians did not believe the economy was improving.
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“Families are doing it tough at the moment. People are struggling to pay their power bills. They’re struggling to pay their insurance premiums,they’re struggling to fill the car,and they’re struggling to pay the prices at the checkout because they know the prices of everything have gone up – in big part because of the government’s disastrous energy policy,” he said.
“I think the treasurer is either completely out of touch with the local community and the Australian people or is trying to hoodwink them,or maybe both.”
Independent economist Saul Eslake said the government deserved credit for not spending more of the windfall gains from rising natural resources revenue,and for its past cost-of-living policies related to electricity and childcare.
Noting that inflation was set to continue declining,he said:“The government needs to avoid doing anything that slows the pace at which inflation is falling.”
He said the government could assist taxpayers by redirecting the stage 3 tax cuts to lower-income earners and removing tariffs on imported goods.
Shadow treasurer Angus Taylor said wages were still struggling to keep pace with inflation.
“What counts is the purchasing power of Australians’ pay packets and that’s going backwards,” he said.
“We’re breaking records in the worst way possible – record-breaking collapse in disposable income,record-breaking collapse in living standards. Australians have been hit with a triple whammy of higher prices,higher mortgage repayments and higher taxes.”