How population growth is impacting inflation rates

Experts say population growth will put temporary strain on the economy, contributing to rising inflation rates before long term benefits are felt.

Senior economics correspondent for The Age, Shane Wright, says 2023 saw a record amount of population growth, however a demographic are returning international students.

“In the short term…more people add to demand, which means there’s probably a little bit more inflation than normal; longer term they’ll probably put down the pressure on wages, which reduces inflation,” he said.

Press PLAY to listen to his analysis of population growth and it’s impact on the economy