The 6.1% rise in inflation to be at the highest level in over 30 years highlights the severity of the current economic challenge and the need for sound economic management to be the Federal Government’s priority mission. Source: Timberbiz
“The jump in inflation reinforces the building industry’s call for the Federal Government to ensure that all its policies are targeted to fighting inflation, protecting growth, and boosting productivity,” Denita Wawn, CEO of Master Builders Australia said.
“The Federal Government’s move to fast track the dismantling of the Australian Building and Construction Commission (ABCC) comprehensively fails this test,” she said.
“Economic modelling by EY and commissioned by Master Builders shows that depriving the construction industry of specialist regulation and oversight for the first time in two decades will increase the cost of delivering projects and exacerbate inflationary pressures in the wider economy.
“Builders have been grappling with inflation at more than double the level of today’s announcement for more than 12 months,” she said.
“This is being felt by consumers whose buying power to build a new home has been substantially eroded.
“It is to be hoped that the recent move by the Reserve Bank to increases interest rates has had some moderating effects on inflation.”
Ms Wawn said that the increase in CPI which is below market expectations supports Master Builders call for the RBA to adopt a cautionary approach to the normalisation of monetary policy going forward.
