Business has demanded the government reduce the rate of spending growth by more than half and get serious about productivity, after releasing new analysis showing more than two-thirds of inflation is being driven by domestic demand.
A day after the Reserve Bank of Australia lifted rates for the fifth time this year, citing domestic demand as a significant factor, the Business Council of Australia said the government had ignored warnings for years about spending at a rate faster than the economy was growing, and now “the chickens are coming home to roost”.
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