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The Guardian - AU
The Guardian - AU
National
Tom McIlroy

Hip-pocket politics is Labor’s greatest vulnerability – and red-hot anger over the latest rate rise isn’t helping

Prime Minister Anthony Albanese seen in silhouette profile against a blue sky
Labor had a tough week trying to defend its part in the RBA’s decision to raise interest rates, with Anthony Albanese (pictured) and Jim Chalmers blaming Donald Trump’s war in Iran for the inflation quagmire. Photograph: Mick Tsikas/AAP

The economy is almost always the main game in Australia’s federal elections. The past week proved it will be as central as ever between now and the 2028 poll.

But, as Labor tries to manage persistent inflation and interest rates rising to a 15-year high, its political standing is not helped by red-hot voter anger or common misunderstandings about how critical economic levers actually work.

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