Australia to deliver 2024 budget as it battles worsening housing crisis, rising cost of living - CNA

MAIN GOAL: TO LOWER INFLATION

Lowering inflation, which is currently at 3.6 per cent, has become the government’s all-consuming goal.

Wages have also not been keeping up with the pace of inflation, and the job market is showing signs of weakening.

Economist Chris Richardson from Rich Insight told CNA: “It’s a really tricky time. Basically, inflation is the everything of the budget - it has not come down as fast as the central bank would like.”

Nevertheless, Mr Richardson said the government must be careful “not to poke the inflationary bear” and not to “add too much extra money into the economy”.

While Australia’s Reserve Bank has decided to keep interest rates on hold for the moment, growing global uncertainty and a huge increase in immigration, is only adding to the country’s woes.

Close to 548,000 immigrants arrived in the 12 months leading up to September last year, and 105,000 arrived this February alone. 

Many are international students seeking rental accommodation, while others are short and long-term visa holders.

The government aims to cut arrivals by 50 per cent to ease the severe accommodation shortage.

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2024-05-14 01:54:54Z
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