Simon Cowen of the Center for Independent Research says there are signs that inflation will be “higher and longer than expected.”
“I think we originally heard that inflation is just a temporary point that is happening in other parts of the world and should not happen in Australia, now we see predictions that inflation may at some point rise above six percent,” Mr. Cowen told Sky News presenter Chris Kenny.
According to him, in the short term the government should “return to fiscal responsibility.”
“We cannot continue to manage large stimulus budgets, huge deficit spending in a very high and rising inflation environment.
“In the long run, we need to improve productivity, we need to deregulate the industry, we need to force businesses to reinvest, we need to get productivity growth that will allow the economy to grow, which will grow along with that and wages.”