Australia’s Albanese says taming inflation is key priority

Australian Prime Minister Anthony Albanese said one of his new government’s priorities is to take the pressure off inflation, which was running at the fastest pace in 21 years in the second quarter and is forecast to accelerate even more by year-end. 

When asked about his biggest challenges in an interview with Sky News on Sunday (Aug 21), Albanese cited the need to rein in “cost of living pressures including childcare, housing and healthcare costs”. He echoed advice from the Treasury Department and the Reserve Bank of Australia (RBA) that inflation will not hit 10 per cent.

Headline inflation is expected to reach 7.75 per cent by December, the central bank said in its most recent quarterly statement on monetary policy. Both the headline and core measures are predicted to remain well above the RBA’s 2-3 per cent target over the next year before hitting the top of its band at the end of the forecast period in December 2024.

Tackling price pressures will be among issues debated at next month’s Jobs & Skills Summit. Strategic competition in Asia with a more “forward leaning” China was another challenge nominated by Albanese.  

Following news that Chinese President Xi Jinping and Russian leader Vladimir Putin are are both planning to attend a Group of 20 summit in the resort island of Bali later this year, Albanese said he will also be attending. 

“It’s an important event for our friends in Indonesia to be hosting,” Albanese said. “I don’t believe that we should allow such an important international institution to be undermined.”

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As for a visit to the US, Albanese said he has been invited by President Joe Biden, but a final decision on timing has not been made. “We’ll work that through, and at some stage in the future that will occur, whether it’s this year or next year,” he said. Bloomberg