Labor could raise welfare payments for cost-of-living relief without stoking inflation, economists say

Albanese government would need to couple any increases in unemployment benefits and pensions with savings, experts say

Addressing competition issues and increasing unemployment benefits and pensions are ways the Albanese government could tackle cost-of-living pressures, but they would have to be coupled with savings to avoid reigniting inflation, economists say.

The prime minister, Anthony Albanese, on Wednesday said he had asked Treasury and the finance department to develop “further propositions” for providing cost-of-living relief by the May budget.