Treasurer Jim Chalmers has warned inflation will get worse before it gets better, anticipating the figure will peak at a whopping 7.75 per cent this year.
Mr Chalmers said he expects inflation to rise again further, which is set to pass seven per cent later this year.
“The current expectation is that it will get worse this year, moderate next year, and normalise the year after. We haven’t reached the peak yet – but we can see it from here." “We expect that government payments will be around $30 billion higher over the forward estimates than was forecast pre-election, because of inflation and wage expectations and how they flow through,” he said.
“This is not just COVID debt we are repaying – our predecessors had more than doubled gross debt before the pandemic hit.Mr Chalmers said it was not Treasury’s expectation that Australia would enter another recession, which is two consecutive quarters of negative economic growth.
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