The Australian government says inflation in Australia could reach 7% by 2022

Sydney (Australia), June 26. Australian Treasurer Jim Chalmers acknowledged on Sunday that inflation could reach 7% this year in the peripheral country, a figure in line with the Reserve Bank of Australia’s forecast.

“The inflation problem is going to get tougher before it starts to slow down,” Chalmers admitted in an interview with ABC Public.

Inflation stabilized at 5.1% in the first quarter of the year, the highest in the past 20 years, while Reserve Bank of Australia Governor Philip Lowe indicated, on Tuesday, that it could reach 7% by the year. end of 2022.

Chalmers stressed that this figure “does not seem out of place” and acknowledged that his government, elected in the May 21 elections, will have to revise the figure in order to plan for the next public budgets due in October.

He indicated that he expected the inflation rate to rise during 2023, although he avoided venturing into setting a figure.

At the beginning of the month, the Reserve Bank raised interest rates from 0.35 percent to 0.85 percent, in the second increase since May to deal with the “big increase” in inflation in the ocean country.

Economic analysts stress that with the current indications, the Reserve Bank of Australia will continue to raise interest rates in the upcoming revisions. EFE

aus-nc / amg

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