Are Government jobs making Australia’s inflation problem worse?

Rising public sector jobs challenge RBA’s fight against inflation amid escalating borrowing costs for homeowners in Australia’s two-speed economy

Australia’s growing public sector is raising questions about productivity and the RBA’s fight against inflation.

Zoran Kresovic argues that government employment growth could be undermining efforts to bring inflation under control, while homeowners continue to face rising borrowing costs.

The Blueberry Markets analyst discusses Australia’s two-speed economy and the challenge facing the RBA as government spending continues.

With interest rates under pressure, the consequences could extend well beyond the public sector and affect households and investors alike.