Australian Economy Australian interest rates

Westpac warns of “supercharged” energy inflation

Tuesday 29 November 2022

Westpac’s latest inflation chart pack explains how Australia’s Q3 inflation would have been significantly higher had state government’s not given energy rebates to households:

Specifically, WA offered a $400 household electricity credit, Queensland a $175 Cost of Living Rebate, and the ACT a $50 rebate for concession households.

Excluding these grants, electricity prices would have risen by 15.6% over Q3 rather than the 3.6% reported.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.