‘Low productivity’ the ‘key problem’ in Australia’s cost-of-living crisis

Crawford School of Public Policy Professor Warwick McKibbin says the “key problem” in Australia’s cost-of-living crisis is “low productivity”. The Reserve Bank held rates at 4.35 per cent at its June meeting. “We have a lot of demand in the economy,” Mr McKibbin told Sky News Australia. “Inflation is the result of demand being in excess of supply. “We have no productivity growth, which is the core problem behind our cost-of-living crisis. “The key problem in this cost-of-living crisis is low productivity.”