Business columnist Terry McCrann says there is a “very real prospect is that we could get into an inflation problem” after Opposition Leader Anthony Albanese backed a 5.1 per cent wage increase.
“You get wages going up, chasing that higher inflation – and that in turn spikes even higher inflation, which feeds back into higher wages,” he told Sky News host Paul Murray.
“The last time we really saw this in Australia was in the 1980s.
“How did it end? It ended with interest rates at nearly 20 per cent, home loan interest rates at 17 per cent.”