An independent economist says the Government’s refusal to tweak immigration rules is a “mistake” that could make inflation worse.
It comes as staff shortages are hitting nearly every industry including healthcare, agriculture, teaching and hospitality.
But speaking with AM on Tuesday independent economist Cameron Bagrie said the Prime Minister’s refusal to tweak the settings is a “mistake”.
“It’s a mistake, to be brutally honest,” Bagrie told AM. “It’s a really simple equation at the moment in regard to getting inflation down. Some inflation is beyond our control, we don’t control international oil prices so we’re sort of beholden to what’s happening globally. But if you look at what’s called domestic inflation…That’s a basic mismatch between demand versus supply and at the moment, we’ve got too much demand relative to supply.
A very astute point. The anti-immigration policies of the Government is adding fuel to the inflation fire.