By: Nick Tyrrell
Liberal Senate candidate Nick Tyrrell says Canberra households are being hit harder than the rest of the country, after new ABS figures showed inflation in Canberra jumped to 4.7 per cent in the year to September, well above the national rate of 4.3 per cent.
Canberra above average, in the wrong way
Canberra’s annual inflation rate was 3.2 per cent in July. It rose to 4.1 per cent in August and 4.7 per cent in September. Prices in Canberra rose 1.0 per cent in September alone, against 0.8 per cent nationally.
“Not long ago the Treasurer told us the worst of the inflation challenge was ‘well and truly behind us’. In Canberra it’s in front of us, and it’s getting bigger every month,” Mr Tyrrell said.
This inflation is made at home
Labor will blame the Middle East conflict and petrol prices. But the measures that strip out fuel and other volatile items tell a different story.
Underlying inflation rose to 3.6 per cent. Services inflation jumped to 4.1 per cent, up from 3.7 per cent. Non-tradables inflation, which tracks the prices set by domestic conditions rather than world markets, sits at 4.5 per cent.
All three are above the Reserve Bank’s 2 to 3 per cent target band.
“You can’t blame a war on the other side of the world for the price of a haircut, your rent or a tradie’s call-out fee. That’s homegrown, and it’s driven by Labor’s spending,” Mr Tyrrell said.
“If only Canberrans could pay their mortgages with Jim Chalmers’ excuses.”
The rate rise Canberra can’t afford
Markets now see a rate rise at next Tuesday’s Reserve Bank meeting as highly likely. If it comes, it will be the 17th rate rise under Labor and will take the cash rate to 4.85 per cent, the highest level since 2008.
The average new owner-occupier loan in the ACT is $666,000. On a 30 year principal and interest loan of that size, another 0.25 point rise would add about $110 a month to repayments. Five rises this year, if passed through in full, would add around $540 a month, or more than $6,400 a year.
And the surcharge hit hasn’t landed yet
Today’s figures only run to the end of September. They don’t yet capture the ban on card surcharges, which started on 1 October. Canberra small businesses can no longer add card fees at the counter, so many have had to build those costs into their prices for every customer.
“I spent the best part of a decade running small businesses in this town, including a cafe. Every hospitality owner I know has had to decide whether to swallow the card fees or put up the price of a flat white or beer. Either way, Canberrans pay, and that cost hasn’t even shown up in these numbers yet,” Mr Tyrrell said.
Canberra deserves a better go
“Canberra’s own Senator, Katy Gallagher, is the Finance Minister. She signs off on the eye-watering spending that is pushing prices up and rates up,” Mr Tyrrell said.
“Canberra has been a safe Labor city for so long it gets taken for granted, and today Canberra families are paying more than the national average for the privilege.”
Mr Tyrrell said the Coalition’s Plan to Fix the Economy would get spending under control, deliver lower taxes, cheaper power and more homes, and end bracket creep so workers aren’t pushed into higher tax brackets by inflation.
“Canberra families want to get ahead and small businesses want to hire. Neither needs another press release with Jim’s spin. They need a government that stops making the problem worse,” Mr Tyrrell said.