Walking the inflation tightrope
![Australian Prime Minister Anthony Albanese reacts during Question Time in the House of Representatives at Parliament House in Canberra, Wednesday, May 15, 2024.](https://australiainstitute.org.au/wp-content/uploads/2024/05/Untitled-design-43-1210x807.jpg)
Inflation isn’t falling as fast as most economists want, but a rate rise now would do more harm than good, says Greg Jericho.
With interest rates refusing to fall below three per cent, some analysts are making dire assessments of the Australia economy. But while so-called ‘sticky’ inflation isn’t great, it’s better than risking a huge drop in demand and a deep recession, according to Greg Jericho. On this episode, Greg examines why inflation is refusing to budge and what policymakers can do about it.
Greg Jericho is Chief Economist at the Australia Institute and the Centre for Future Work and popular columnist of Grogonomics with Guardian Australia. Each week on Dollars & Sense, Greg dives into the latest economic figures to explain what they can tell us about what’s happening in the economy, how it will impact you and where things are headed.
Host: Greg Jericho, Chief Economist, the Australia Institute and Centre for Future Work // @GrogsGamut
Producer: Jennifer Macey // @jennifermacey
Theme music: Blue Dot Sessions
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au.
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Corporate Profits Must Take Hit to Save Workers
Historically high corporate profits must take a hit if workers are to claw back real wage losses from the inflationary crisis, according to new research from the Australia Institute’s Centre for Future Work.
The debate about inflation, interest rates, and the cost of living is broken.
Spreading fear about inflation not falling fast enough distorts the true picture
No need for panic over ‘sticky’ inflation: Jericho
Inflation has stopped falling, but there’s no need for a further rate hike, says Greg Jericho.