Splurging shoppers push economy over speed limit

Resurgent consumer spending raises the prospect of inflation persisting in the Australian economy. (Bianca De Marchi/AAP PHOTOS)

The treasurer has rubbished suggestions government spending is denying borrowers more rate relief, as a household shopping spree complicates the Reserve Bank's mission to tame inflation.

The opposition said Labor's budget deficits were fuelling inflation, but Jim Chalmers pointed to economic growth figures showing the private sector had moved into the driver's seat.