Review links Australia's COVID-19 spending to current inflation pressures

A review has found that the Australian government's $343 billion COVID-19 spending contributed to current inflation pressures. It indicates inflation is up to 2 percentage points higher due to this spending and central bank measures. The review highlights that while the spending helped manage the health crisis, it also led to increased rents and housing costs. The JobKeeper program was noted as a key measure that supported the economy during the pandemic. Despite the inflationary effects, the review concluded that the government's actions in 2020 helped mitigate the pandemic's economic impact and positioned the economy for recovery.