Queensland cash splash could send inflation below 3pc

Headline inflation could fall below 3 per cent within months after the Queensland government unveiled billions in household subsidies, but economists warn the policies will not make a rate cut more likely and could make the inflation problem worse.

Queensland Premier Steven Miles on Tuesday announced $11.2 billion in cost-of-living relief in a last ditch effort to secure re-election for the three-term Labor government, which is trailing the LNP opposition in opinion polls.