Australian Treasurer Wayne Swan said inflation is likely to remain a problem for the country for the next 18 months.

Swan, making his first major address since the Labor Party's electoral victory three weeks ago, said the underlying inflation rate was running at about 3 percent and faced further pressure throughout 2008.

The Australian Broadcasting Corp said that he told a forum of business and industry leaders that the new government will enforce an era of strict budgetary discipline and move toward expanding productive capacity in the economy.

Swan said the inflation threat was not just of interest to economists.

"It's one of those measures I think that Australian families are intensely interested in. They know as well mas we do that inflation puts our prosperity -- individual, business and national -- at risk," he said.  // Copyright 2007 by United Press International



Publication date: 14 December 2007   

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