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The RBA is making confusion about inflation and the cost of living even worse

By John Quiggin, Professor, School of Economics, The University of Queensland

There’s a paradox about the way we respond to threats to the cost of living.

On one hand, governments put in place subsidies for things such as rent and electricity, as the federal government did in this year’s budget.

On the other hand, we get told these subsidies are inflationary because they…

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