The proposition that cutting prices will stoke inflation is a hard one to get your head around, even if you are an economist.
Yet it has been seriously put forward as a critique of this month’s budget; the one in which Treasurer Jim Chalmers announced measures that will take the edge off electricity and gas prices, the price of prescriptions and some visits to the doctor, and the out-of-pocket costs faced by low-income renters.
And childcare. Although announced in last year’s budget, measures to take effect in July are set to save a typical family with one child in care about $1,780 per year.
