Chalmers' inflation hangover
In his first press conference of the new year, the treasurer highlighted Australia’s wage growth as he cautioned that progress in the fight against inflation isn't a 'straight line'.
In his last press conference of 2023, Treasurer Jim Chalmers said he was confident that inflation was moderating but cautioned he didn’t want to get ahead of himself.
Back then, market expectations were that the US Federal Reserve would begin rate cuts from May and that there may not be a need for any more rate hikes in Australia.
Early signs indicate Chalmers may have been right to be cautious. Inflation accelerated last month in European countries including Germany and France and economists have begun to temper forecasts about the pace and scale of US rate cuts this year.
In his first press conference of 2024 on Monday, Chalmers was careful to manage expectations ahead of new inflation data being released this week.
