9 things government can do to reduce your living costs

High prices are a signal to businesses of where to invest, and price caps are a signal of where not to invest.

7. Moderate the Energy Transition

The inflation in rail and road infrastructure projects is nothing compared to what is about to happen in the area of power generation.

It is already diverting labour and resources from everyday necessities like housing, but there is a looming shortage of the components that make up renewable energy and power networks.

In addition, proceeding without adequate storage is going to increase the need for gas-fired power generation, which is only going to get more expensive because of government policies making it difficult to start new gas projects.

8. Reform Federal-State Relations

Not all the fault for inflation lies with the federal government, a lot of it lies with the states who have borrowed profligately.

The Commonwealth either needs to reintroduce borrowing limits, as used to be the case under the Loans Council, or make it clear to lenders (and voters and governments) that they will not bail out state governments that can't repay their borrowings.

9. Nominate a Minimum Range for Interest Rates

A large slab of our problem is that the RBA pushed interest rates too low-to a historically unparalleled rate.

It should be clear to the RBA, and to voters, that official interest rates should never fall below, say 3.5 percent.

The record-low rate of 0.1 percent was absurd for a number of reasons.