Post #869114

Petrol prices go up, causing inflation. RBA hikes rates, even though that will have no impact on petrol prices. Government "injects money" by lowering the fuel excise, offsetting (part of) the price increase. This apparently is inflationary (even though it actually lower prices), and will cause the RBA to hike rates. Is it possible that economists are stupid? Without arguing the merits of lowering the fuel excise, this isn't inflationary. It's not putting extra money into the economy. Yes, it's lowering government revenue, but that's offset by the _higher fuel prices_. There will be eventual impacts on government debt, but that's not an immediate issue. https://www.theguardian.com/australia-news/2026/mar/30/interest-rates-rba-fuel-excise-australia-albanese