Inflation jumps in October, adding to pressure on government to make budget savings

By Stephen Bartos, Professor of Economics, University of Canberra
John Hawkins, Head, Canberra School of Government, University of Canberra

Annual inflation rose to a 16-month high of 3.8% in October, adding to pressure on the government as it seeks to make savings across the public sector.

When governments, whether Commonwealth, state or local, increase spending it adds to inflation. Opinions differ on whether Commonwealth spending makes a significant difference. Opposition finance spokesperson Jane Hume argues…

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