Swan heartened by lower inflation rate
Wayne Swan, Treasurer of the Federal Government, says he is encouraged by the newest figures indicating inflation was lower than expected for this June quarter.
"It's very encouraging to see the trend with underlying inflation, and as you know this is the measure the Reserve Bank pays particular attention to," the Treasurer said.
Inflation went up by 0.6 per cent for this June quarter, making headline inflation for the fiscal year ending on June to 3.1 per cent.
However, the Reserve Bank's figures for underlying inflation, which cancel out much of the movements of volatile price, went up by only 0.5 per cent for this June quarter.
This figure sets the underlying inflation rate to 2.7 per cent for the fiscal year ending on June, which is right on target of the 2 to 3 per cent range predicted by the RBA.
The lower than projected rates lessen the possibility of the Reserve Bank upping interest rates during the election period.
However, Mr. Swan said Australians were still being pressured regarding prices and resumed his criticism of the parental leave tax on large businesses of the Coalition.
"Today's figures, while lower than expected, still show there is financial pressure facing Australian families and businesses," he remarked.
"And of course the last thing Australian families and businesses need is Mr [Tony] Abbott's Coles and Woolies tax."
But Joe Hockey, spokesman for treasury of the Opposition, said the inflation rate is an outcome of Labor's failure.
"I'm sure the Treasurer will say that inflation is under control," he said.
"You can't say that to Australian families that are paying 18 per cent more for their electricity, who are paying 14 per cent more for their water, 10 per cent more for their gas and nearly 7 per cent more for hospital and medical services."