Federal Opposition Leader Brendan Nelson has denied Australia is facing an inflation crisis.

Addressing a lunch hosted by the Brisbane Club today, the coalition leader said the so-called inflation crisis was nothing more than a story "concocted" by the Rudd Labor government.

"Labor has created a new blame game by concocting this story about some sort of inflationary crisis," he said.

"The Rudd Labor government is running a policy, in tandem with the Reserve Bank, of slowing growth," Dr Nelson said.

"The likely outcome will be higher unemployment that will be intensely painful for families in southern states."

Nelson's claims 'clueless'

The Treasurer has called Dr Nelson’s claim bizarre and grossly irresponsible.

"I don't think 8 interest rate rises in 3 years is imaginary," Wayne Swan said.

"When was the last time that D Nelson and Mr Turnbull went to a supermarket? Inflation is a substantial problem in this country,” Mr Swan said.

The Reserve Bank thinks it's a problem.

Today's board meeting left interest rates on hold, saying growth is slowing but uncertainty remains.

It's not ruling out another rise.

The Treasurer's blaming the last Government for 8 rises in 3 years.

But Dr Nelson says it's this Government's rhetoric.

"Labor has to some extent brought these inflation numbers on itself and our country," Dr Nelson said.

Business won't call it a crisis, but Greg Evans, form the Australian Chamber of Commerce and Industry (ACCI) says they are mindful of the pervasive impact of inflation and consider inflation a clear and present danger.

The latest business expectations survey by the chamber and Commonwealth Bank shows confidence at a 5-year low.

The Reserve Bank is worried about expectations too, warning inflation fears could fuel a wages breakout.

At Westpac, they think inflation's real - and a real challenge.

Westpac's Bill Evans says "you have a central bank that still has the same strategy as last month but less confident that the strategy will actually deliver the results they want".

That's where next week's Budget comes in, aiming to help by cutting spending.

One pre-Budget proposal put to the Productivity Commission would see all employees paying a 6 dollar weekly levy in return for paid maternity leave. Six months for Mums, one for dads.

Employers and the Government would contribute too.

But the Treasurer says he won't judge maternity leave proposals until the Productivity commission inquiry has reported.

Australians will pass judgment on his plans for the economy when his first Budget's handed down next Tuesday.

Meanwhile, the latest voters' verdict is good news for the coalition.

Newspoll has Coalition support at its highest since Brendan Nelson took the leadership at 43 per cent, after preferences - a 4-point rise.

Labor is down by the same amount but still ahead on 57.

Still no personal good news, though, for Dr Nelson. Kevin Rudd's up again to 72 per cent, while he's back to single figures.

Dr Nelson faces his first electoral test as leader next month.

The Gippsland by-election to replace retiring National Peter McGauran has been set for June 28.