Rising prices have one big common denominator. When will we learn?

July 9, 2026 — 3:30pm

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Australia’s inflation problem is painful and persistent and it won’t truly improve until we address its root cause: privatisation.

Despite impassioned arguments from both sides of politics since the 1980s, polling shows Australians hate privatisation with a passion. And that’s even before we’ve woken up to the fact that it’s driving inflation.

You can hardly blame the average person for being unaware. Our inflation scapegoats tend to be limited to whoever is governor of the Reserve Bank of Australia, and pesky workers and their obsession with getting paid.

Privatisation manages to slink away in the shadows with nary a rock thrown in its direction. It’s time that ends.

So why is privatisation to blame? Well, let’s look at what’s driving price increases.

The fastest-rising costs in the CPI basket over the past two decades have been utilities (gas 5.9 per cent per year), electricity (5.7 per cent), medical and hospital services (5.5 per cent), insurance (5.3 per cent), schools and childcare (secondary 5.2 per cent, preschool and primary 3.9 per cent) water and sewerage (4.6 per cent) and housing (3.9 per cent). Other items have fallen: electronics, household appliances, clothing and footwear have got much cheaper, courtesy of........

© The Age