Westpac warns of “supercharged” energy inflation

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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:

Contributions to Q3 CPI

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.