Australia's centre-left Labor government said on Monday it would include A$14.6 billion ($9.84 billion) over four years in the federal budget for cost of living relief for families and businesses, which it promised would not stoke inflation.

The news also highlights the Reserve Bank of Australia’s (RBA) latest warning, released on Friday, that risks to inflation were on the upside given low productivity growth, rising energy prices and a surge in rents.