What will the impact of the 2008-09 Federal Australian Budget have on inflation?

Question

What will the impact of the 2008-09 Federal Australian Budget have on inflation?

Answer 1

Hopefully something better than old Johnny and Costello. I commend them for turning Australia in the economic powerhouse it is today, but they neglected the system after privatising virtually everything they could get their hands on.

Then again, it looks like this emissions trading scheme is going to kill us even more than the current (rising) rates of living.

Add that to the fact that Labor is more or less Liberal party conservative now (which is a d**n shame, I was interested in an inheritantly neoliberal party winning office), probably nothing will become of it. I think I'll vote LDP (Liberty and Democracy Party - our version of a libertarian party) next election and give 2-party-preference to the Democrats (if they survive a little longer).

Answer 2

If the government research is to be believed they say the target rate for 2008/09 is 3.5%.  This is above the target rate of 2-3% set bu the RBA.  This is mainly due to the high level of aggregate demand for minerals rather than increasing consumer spending.  The government budget was a surplus of $21.7bill, this is positive in a time of high inflation and a boom in the trade cycle.