Anthony Albanese ‘dead serious’ about fixing cost of living crisis

Jim Chalmers warns Australia can’t be complacent about the global challenges flagged in the World Bank report, as the government sets its sights on cost of living.

Jim Chalmers has welcomed the World Bank report’s “blunt warning” that the global economy is in for its worst half decade of growth in 30 years, as the government sets its sights on providing cost of living relief and investing in the economy.

While the Global Economic Prospects report revealed growth is expected to slow for the third consecutive year from 2.6 per cent to 2.4 per cent, the Treasurer took it as a reminder to not be “complacent”.

“Our job in Australia is to make this not a lost decade, but a defining decade to modernise our economy and maximise our advantages,” Dr Chalmers told ABC Radio National on Wednesday.

“And that’s why we are deploying a textbook combination of cost of living relief to help people through difficult times, investing in a stronger economy in areas like skills and housing, the energy transformation, technology, the care economy and human capital.

“And it’s also why we’re getting the budget in much better nick so that we can confront this uncertainty in the world economy.”

The Treasurer said Australia is not immune to the conflicts in Europe and the Middle East, high interest rates around the world and a slowdown in China.

“But we are entering this period of global uncertainty from a position of relative economic strength,” he said.

Dr Chalmers also reinforced Anthony Albanese’s foreshadowing of further cost-of-living relief ahead of the May budget.

The Prime Minister, Anthony Albanese and Treasurer, Jim Chalmers. Picture: NCA NewsWire / Martin Ollman

“We’ve made it clear that in addition to rolling out these tens of billions of dollars in cost-of-living that we’ve already budgeted for, that we are prepared to consider further measures between now and the May budget,” he said.

“I don’t really want to get into ruling things in or out. What I can say, is that we’ve shown an ability to roll out this cost-of-living relief in a way that takes some of the edge off these inflationary pressures, without adding to them.”

In a separate press conference, Dr Chalmers acknowledged people are still under pressure despite inflation falling to a two-year low of 4.3 per cent in November.

“This is a really welcome and encouraging outcome but we don’t get carried away because we know people are still under the pump.”

The Prime Minister on Wednesday said his government is “dead serious” about fixing the cost-of-living crisis.

It comes as Labor appointed former trade minister Craig Emerson to lead a review of the food and grocery code of conduct that will investigate supermarket price gouging.

“We find it completely unacceptable that when supermarkets are getting goods cheaper, the prices should go down. When that doesn’t happen, then there’s something wrong in the system and that’s an abuse of market power - and that’s why we’ve got Dr. Craig Emerson conducting this review,” he told Nine’s Today.

Mr Albanese was pressed on how long it would take for Australians to see results from the inquiry and if it was guaranteed supermarket prices would come down.

“Well, what we are seeing is that inflation is heading in the right direction, that has been something over a period of time,” he said.

“But we’re taking a range of measures including this, to strengthen the powers that the ACCC already have.”

The inquiry led by former trade minister Dr Craig Emerson will aim to ensure key players such as Coles and Woolworths are adhering to the food and grocery code of conduct.

“What we’re doing is doing everything within our power to reduce inflation. That’s why we’re dealing with supply chain issues. That’s why we’re providing cost of living relief in a way that doesn’t increase inflation. And that’s why we’re putting that overall downward pressure on by producing the first budget surplus in 15 years.”

He remained firm on keeping stage three tax cuts, set to come into effect from July 1.

“We haven’t changed our position on that, but I recognise that there’s a range of views out there about this, but we haven’t changed our view.”