In a recent article for the Australian Financial Review, economist Christopher Joye made the case that the expansion of government at all levels was putting upward pressure on inflation and, by extension, interest rates.
“At the federal level, the annualised monthly trend budget deficit has deteriorated rapidly from $12 billion in December 2024 to $24 billion in June 2025 and now $35 billion in November”.
“This deficit represents the shortfall between public revenues and spending. And it does not account for spending at the state and local government levels”.
