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
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
