Treasurer Jim Chalmers is bracing for the May federal budget to forecast inflation to be in the high 4 per cent range as the escalating Middle East conflict spurs fuel prices and makes the prospect of an interest rate rise next week more likely.
Chalmers told colleagues this week that Treasury’s preliminary analysis of the impact of the war suggests headline inflation will be in the “high 4s” this year, according to a government source not authorised to speak publicly.
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