Hockey blames carbon tax for inflation spike


AAP

Treasurer Joe Hockey has blamed a strong rise in the rate of inflation on the continued impact from the former Labor government's carbon tax.

The consumer price index for the December quarter unexpectedly jumped by 0.8 per cent in the December quarter, almost double the rate expected by economists.

This pushed the annual rate of inflation to 2.7 per cent from 2.2 per cent in the previous quarter and into the top half of the Reserve Bank's two to three per cent target band.

It was the highest rate of inflation in two years.

"The inflation rate continues to be impacted by Labor's carbon tax," Mr Hockey said in a statement on Wednesday.

"Labor senators should stop standing in the way of cost-of-living relief for Australian families and vote to repeal the carbon tax when parliament resumes."

But economists have highlighted increased fruit and vegetable prices, caused by adverse weather affects, and a falling dollar.

Commonwealth Bank of Australia chief economist Michael Blythe said big increases in fruit and vegetable prices were linked to weather impacts, and the weakening Australian dollar was boosting domestic tourism.

Labor and the Australian Greens will hold the balance of power in the Senate until July, and have refused to back the government's attempts to ditch the impost.

The government believes the repeal of the carbon tax will create a stronger economy and will save families an average of $550 next financial year.

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I don't see it Joe's way. If the dreaded carbon tax is ultimately passed to consumers and they have sooo much trouble coping with it amongst all their other bills, you would think any additional taxes would be an economy-wide inflation suppressant. Joe is missing something there as people who know better than him planned for a slight slowing of growth.
Let's just face the fact that the carbon tax was very bad policy, very badly implemented and it must be removed immediately. It was never anything other than socialist government wealth redistribution policy dressed up as 'climate' so that the gullible would support it.
Yeah, I blame those 98%of climate scientists and their damned conspiracy, but I dont get what they gain. Could someone ......please explain? (Preferably a Right Bastard. I just don't trust those loony lefties)
Robert, Move on mate, the carbon hoax, its gravey train and the carbon tax is over.
Hockey is one of the left over Howard regime liars who have managed to get themselves elected on one lie after another. I recall that the debt ceiling was abolished after the election and Hockey was crying "responsible financial management" before the election. Hockey has no credibility and like a number of other curs who were elected shows dishonesty and contempt. for the electorate which elected him. Anything Hockey says should be remembered for what it is. Personally I have no more time for this creature and I hope that ordinary Australians are smart enough to see what they have.
That is a bit rich. Tell us about Swan's track record - the "achieved" surplus, for example. I don't think Hockey could match that, if he tried for 50 years.
And the Coalition's deficit and debt gets bigger and bigger.
Direct Action will cost three times carbon pricing and will be less effective. No wonder Labor and Greens senators won't move. That $550 savings figure is nonsense. It assumes among other things a 9% fall in electricity prices. Even if it's $550, families will be worse off when the school kids bonus is cut. It's $410 a year for primary school kids and $820 for secondary school kids.