Cost of living has been bubbling along as the number-one issue for Australian households, and now it threatens to hijack the Albanese government’s second-term agenda. The return of high and rising inflation is not only a blow to workers who were finally starting to see some real growth in their wages through 2025. With housing a major component in the consumer price measure, the Liberals have been quick to blame migrants for high inflation, setting the stage for more ugly politics ahead. “In politics, if no one offers a plausible path to security, you vote on identity and resentment instead.”The Albanese government needs an economic agenda that delivers hope and security. They can’t do that as long as inflation stays high.