Adam Bandt suggested on 7.30 Treasurer Jim Chalmers should use his current legislative powers to overrule the Reserve Bank when it comes to interest rates.
The suggestion is controversial because under proposed reforms to the Reserve Bank, the government would give up its power to direct the central bank on interest rates.
Inflation in Australia fell to 3.5 per cent in July, down from 3.8 per cent in June.
In August, the RBA kept the official cash rate on hold at 4.35 per cent but overnight the US Federal Reserve slashed interest rates there by half a percentage point.
The move prompted Mr Bandt to suggest that Mr Chalmers should use his power to overrule the RBA and cut rates in Australia to provide relief.
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