The federal government knows people are doing it tough. Inflation and interest rate pressures have put the cost-of-living at the forefront of voters’ minds.
As the national accounts data shows, disposable income has fallen. Households have been forced to run down their savings. The household savings ratio has hit its lowest level in 16 years.
The mid-year budget update released on Wednesday confirms this. The Mid-Year Economic and Fiscal Outlook (MYEFO) estimates the economy is expected to expand by a low 1.75% in 2023–24. It also notes inflation – although moderating – is still too high. The outlook attributes that mainly to global oil prices.
