Jim Chalmers and RBA disagree over whether Labor’s energy subsidies are inflationary

Treasurer Jim Chalmers maintains Labor’s $300 energy bill subsidies are not inflationary despite the Reserve Bank claiming otherwise. Analysis shows government spending on goods and services went up by nearly 12 per cent in the nine months to March this year. The central bank says big spending public sector budgets risk making Australia’s economy too hot after Governor Michele Bullock pushed back the prospect of a rate cut to 2025.