- Australian Treasurer Chalmers: Inflation now forecast to peak at 7.75% in Q4
Market news
Australian Treasurer Chalmers: Inflation now forecast to peak at 7.75% in Q4
Delivering a "confronting" economic statement to the nation on Thursday, Australia’s Treasurer Jim Chalmers said that inflation is now forecast to peak at 7.75% in the December quarter.
Additional takeaways
Headline inflation seen at 5.5% by middle of 2023, 3.5% by end of 2023, 2.75% by middle of 2024.
Final budget outcome for 2021-22 likely to show a dramatically better-than-expected outcome.
Unemployment rate expected to remain low before returning to 3.75% by June 2023 and 4% by June 2024.
Short, medium-and-longer-term pressures on the budget are more pronounced.
Upgrades forecast for nominal wages growth to 3.75% this financial year and next.
Real wages are expected to start growing again in 2023-24.
Expect that government payments will be around a$30 billion higher over the forward estimates.
Market reaction
At the time of writing, AUD/USD is trading modestly lower at 0.6989, unperturbed by the above comments from Chalmers.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer