However, crude oil is already trading at $US116 ($169) a barrel.Oliver agrees that the rise in inflation will 0.5 per cent less in the short term, but says this still leaves a 1.2 per cent boost due to petrol prices since February levels.He predicts inflation will rise above 5 per cent year-on-year and says "if oil and petrol prices keep rising, then it will be a minor respite".Richard Holden, scientia professor of economics at UNSW Business School, labelled the fuel excise cut "a mistake"."I understand people are under a lot of household financial pressure, [but] we need to be taking demand out of the system, rather than putting it into the system," he told SBS News.He labelled Chalmers' reassurances that this would drive down inflation as "disingenuous", likening it to the effect of electricity bill subsidies."It's government spending going into the economy but uncertainty around the globe could mean that they potentially wait."Hartigan agreed with Holden that while the fuel excise gives Australians a bit more money, he argued that public sentiments are currently "more pessimistic" and could lead to a slowdown in activity."It really depends on how people spend that extra income they get or they choose to save it