Treasurer warns of worsening inflation scenario
Treasurer Jim Chalmers has warned inflation in Australia “will be worse before it gets better”.
Appearing on ABC’s Insiders on Sunday, Chalmers said it was likely that inflation would be significantly higher than the 5.1% figure in the March quarter.
Reserve Bank of Australia (RBA) governor, Philip Lowe, previously said last week that he expected inflation would peak at 7% before falling in 2023. In response, Chalmers said he felt this figure “doesn’t seem to be wildly off mark”.
“Inflation will be worse before it gets better,” he said. “That’s the expectation across the board and that’s a difficult situation that we need to deal with before inflation hopefully moderates through the course of next year.
“Inflation will be significantly higher than what was in the last Government’s most recent Budget, certainly higher than the 5.1% we saw in March."
Chalmers said he would be able to give a more accurate forecast at the end of July.
AUTHOR
Laura Dew
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
