Inquiry into cost-of-living crisis to help struggling Australians

Supermarket giants, energy producers and other major industries will front an inquiry into Australia’s cost of living crisis amid calls for the federal government to do more to assist struggling households and business.

Supermarket giants, energy producers and other major industries will front an inquiry into Australia’s cost of living crisis amid calls for the federal government to do more to assist struggling households and business.

Supply chain factors driving up prices for consumers at the checkout and soaring power costs will be probed by the new Select Committee on the Cost of Living, which will hear from major companies like Woolworths, BP Australia and Ampol.

Coalition finance spokeswoman Jane Hume is chair of the committee, and told News Corp a clear plan was needed to address cost of living, which was the “number one issue” for Australians.

“This committee has the scope to look at issues up and down the supply chain, how they can be resolved, what barriers can be removed, so retailers can deliver lower prices to Australian consumers,” she said.

The first round of public hearings start in Sydney, Melbourne and Brisbane next week, and will focus on Labor’s new gas price cap legislation, with appearances by the peak bodies like the Australian Petroleum Production & Exploration Association and the Australian Energy Council (AEC).

Senator Jane Hume will chair the cost of living commitee.

With AEC warning the government’s gas price cap would not provide “immediate relief” for consumers, Ms Hume said the committee would explore other ways to reduce costs.

“I am looking forward to listening to what industry has to say and work with them to find practical solutions that will make a difference to the lives of ordinary Australians,” she said.

Ms Hume said the committee was needed because the government had “broken its promises” on cost of living, including delivering a $275 saving on power bills by 2025.

“Instead we’ve seen energy prices go up and no one from Labor will even say the words ‘$275’,” she said.

In later rounds the committee will hear from Exxon Mobile Australia, Shell, Conoco Phillips and Woodside, as well as major energy retailers including AGL and Origin Energy.

Inflation figures for the final quarter of 2022 to be released on Wednesday are expected to show another increase up from 7.3 per cent, with Treasury and the Reserve Bank both predicting the December numbers will be the peak.

Inflation is hoped to have peaked in Australia in the December quarter.

Treasurer Jim Chalmers has said he is hopeful inflation would not rise further this year, but warned the Australian economy would still be hit by higher interest rates and global turbulence in 2023.

“We do know already inflation is the defining challenge in our economy,” he said earlier this week.

“It will be higher than we’d like for longer than we’d like.”

Mr Chalmers has pointed to Labor’s introduction of cheaper medicines this month, more generous childcare subsidies coming in July and power bill relief for low-income households due after the May budget as efforts the government has made to reduce cost of living.

Originally published as Inquiry into cost-of-living crisis to help struggling Australians