SYDNEY, (Reuters) – Australia’s Treasurer said Wednesday that he wants minimum wages to rise quickly enough to meet rising inflation. The looming increase in energy prices could worsen a crisis of cost-of living.

Jim Chalmers, Treasurer of the Labor Party stated to reporters that the Labor government will honor a pledge made by him before the election. He said that he would support a wage hike equal to the 5.1% inflation rate.

Within the next few days, the Fair Work Commission will determine the minimum wage. The government has the option to make a recommendation about the amount of the award.

While there have been some arguments that a rise of 5% will only increase inflation, Chalmers stated that the lowest paid earned it. Many people continued working right up to the end of the pandemic.

He also spoke out about strains within the national energy market, where the wholesale price of oil has risen in recent weeks. This led to rising bills for consumers.

Chalmers explained that the perfect storm of rising energy prices is causing enormous harm to both our economy and our families.

After official data indicated that the Australian economy had grown by 0.8% and 3.3% respectively in March quarters, he was speaking after the announcement.

Chalmers stated that, while the report had some positive points, the growth rate was lower than predicted by the Liberal National government and inflation was higher.

It meant that there were “troubling parts” of the budget. He would outline them to parliament in ministerial statements, but he didn’t offer guidance about timing.