Workers did not cause Australia’s inflation woes. But they will be the ones who sacrifice the most

‘While Lowe did link the impact of profits on inflation in his appearance before the committee last Friday, he also made it clear who was to shoulder the burden of reducing inflation.’ Photograph: Dado Ruvić/Reuters

Last Friday before the House economics committee, the governor of the Reserve Bank made it clear workers had nothing to do with the current rising inflation, but they are the ones expected to sacrifice the most in order to slow it.

In February, when he last appeared before the committee, Philip Lowe said the RBA’s “forecast is that underlying inflation will increase to 3.25% in the coming quarters, before easing to around 2.75%”.