Fixing inflation more important than tax cuts: Rudd
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![Mr Rudd says he will honour his election promise to deliver $31 billion in tax cuts, but beyond that, containing inflation is his priority [File photo].](http://www.abc.net.au/reslib/200801/r214987_833778.jpg)
Mr Rudd says he will honour his election promise to deliver $31 billion in tax cuts, but beyond that, containing inflation is his priority [File photo]. (AAP: Ardiles Rante)
Prime Minister Kevin Rudd says tackling inflation is a higher priority than delivering future tax cuts.
The Federal Government looks set to hold off any future tax cuts, in a bid to curb rising inflation.
Instead, big budget surpluses would be quarantined with the Reserve Bank or the Future Fund.
Mr Rudd says he will honour his election promise to deliver $31 billion in tax cuts, but beyond that, containing inflation is his priority.
"Our number one responsibility is to fight the fight against inflation because if you fail to do that effectively, the impact on people's lives, their livelihood, their mortgage interest payments, as well as the cost of doing business just goes through the roof," he said.
"The economically conservative and responsible thing to do is to place the war against inflation number one."
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