Liberal Senator Jacinta Nampijinpa Price has accused the Albanese government of blaming conflict in Iran and the Middle East for Australia’s cost of living crisis, arguing the problem stems from domestic policy decisions rather than global instability. She said rising inflation, energy prices and taxes began in Canberra, not overseas, and claimed the Treasurer would use the conflict to justify higher fuel prices and household costs in the upcoming May budget.

Her comments come as escalating violence involving Iran and Israel disrupts global shipping routes and pushes up oil prices, prompting warnings from the Treasurer and the Governor of the Reserve Bank of Australia that further pressure could be placed on inflation. Price dismissed those concerns as deflection, accusing the government of excessive spending, regulation and poor energy policy that she says have driven long term financial strain for families.

New data from the Australian Bureau of Statistics showed the economy grew by 2.6 per cent in 2025, the fastest pace in nearly three years. However, economists cautioned that growth was largely driven by Australians working more hours rather than improvements in productivity, raising concerns that inflation could persist without stronger efficiency gains.

The Treasurer acknowledged ongoing challenges around inflation, productivity and global uncertainty, saying the budget would focus heavily on those issues. Analysts also warned that volatile factors inflated the headline growth figure, while household spending remained subdued, leaving the broader economic outlook fragile.