Pandemic cash splash let inflation genie out of bottle

A report finds excessive stimulus should have been wound back especially in the construction sector. (Dan Himbrechts/AAP PHOTOS)

Unnecessary COVID-19 spending and Reserve Bank delay in lifting interest rates significantly worsened inflation, a review of Australia's pandemic response finds.

While supports like JobKeeper and HomeBuilder were desperately needed and an important intervention in a pandemic crisis setting, wastage and policy missteps cost the economy dearly, according to the review.