Treasurer Jim Chalmers has revealed the government is working on a new plan to try to force down domestic gas prices as he conceded energy costs would be the key driver of inflation over the next six-to-nine months.
Speaking two weeks before handing down his first budget, Dr Chalmers cautioned, however, against providing further cost-of-living relief to help consumers with power prices, saying that could make the inflation problem worse.
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Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@afr.com