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The New Daily
The New Daily
Stephanie Richards Matthew Elmas

Federal budget 2022: Election sweeteners could trigger earlier rate hikes

The budget took aim at the cost of living. But its key policies could backfire. Photo: TND

Cost-of-living giveaways in the federal budget will only offer temporary relief for households and could backfire by pushing up inflation and interest rates over the long term, economists have warned.

In his budget speech, Treasurer Josh Frydenberg spruiked a new “temporary, targeted and responsible” cost-of-living package headlined by a cut to the fuel excise and an increase in the low-and-middle-income tax offset.

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