Chalmers cautious but upbeat as he scraps fuel discount amid softening inflation
Australian Treasurer Jim Chalmers remains cautiously optimistic as inflation figures show a slight decline, easing pressure for further interest rate hikes. Despite this, the government remains wary of global economic volatility and the impact of inflation on household budgets.
Why it matters
The economic outlook directly impacts government policy, interest rate decisions, and the cost of living for Australian citizens.
Jim Chalmers is now more cautious. ( ABC News: Ian Cutmore )
Link copied Share Share article Listen to this story Loading There were no bold declarations about corners being turned or missions being accomplished.
After delivering a pre-election prediction that "the worst of the inflation challenge is behind us", only to see inflation then steadily rise, Jim Chalmers is now more cautious.
Yet the treasurer was undeniably upbeat yesterday. He welcomed data showing inflation running slightly below where both his department and the Reserve Bank expected it to be just a few months ago.
Headline inflation fell for the third consecutive month to 3.8 per cent. Underlying inflation remains at 3.6 per cent.
Still too high, to be sure. But fears of another interest rate rise have eased. Some economists reckon the Reserve Bank will now sit tight for the rest of the year.
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