Anthony Albanese’s Treasurer predicts inflation will peak at 7.75% – the highest since 1990 – as he paints bleak picture of the economy with real wages falling and $1TRILLION of debt: ‘There’s no use tiptoeing around it’
- Treasury is now expecting inflation to hit 7.75 per cent by the end of 2022
- This would be the worst headline inflation since the March quarter of 1990
Prime Minister Anthony Albanese’s Treasurer Jim Chalmers has revealed his department is expecting inflation to hit levels unseen in 32 years.
Treasury is now expecting headline inflation to hit 7.75 per cent by the end of 2022, the highest since the March quarter of 1990.
This is even more severe than Reserve Bank of Australia governor Philip Lowe’s prediction of seven per cent inflation by Christmas.
‘This is about giving you the best sense we can about what is really going on,’ Dr Chalmers told Parliament on Thursday.
‘There is no use tiptoeing around the pressure people are under.
‘(We can’t) pretend that our problems will solve themselves’
Prime Minister Anthony Albanese ‘s Treasurer Jim Chalmers has revealed his department is expecting inflation to hit levels unseen in 32 years
Inflation in the June quarter surged by 6.1 per cent, the steepest increase since mid-2001.
But when the one-off effects of the GST were taken out, this was the most severe consumer price index since the December quarter of 1990.
Higher inflation means workers are set to suffer a cut in real wages, with the latest headline inflation increase vastly outpacing the 5.2 per cent rise in the minimum wage that came into effect on July 1 for some workers.
More than 2.5million workers on awards only received a 4.6 per cent increase from the Fair Work Commission.
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