The Albanese government’s demand for an above-inflation wage increase for almost 3 million workers in the middle of a global oil price spike risks repeating the mistakes of the 1970s stagflation shock, economists warn amid predictions Australia could have one of the highest inflation rates among advanced economies.
Labor’s new pay push came on the same day the Organisation for Economic Co-operation and Development called out Australia for a “resurgence in inflation” and predicted the Reserve Bank would be forced to raise official interest rates again before the middle of this year.