Headline inflation could fall below 3 per cent within months after the Queensland government unveiled billions in household subsidies, but economists warn the policies will not make a rate cut more likely and could make the inflation problem worse.
Queensland Premier Steven Miles on Tuesday announced $11.2 billion in cost-of-living relief in a last ditch effort to secure re-election for the three-term Labor government, which is trailing the LNP opposition in opinion polls.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com