Australia’s inflation could reach 7% in 2022, according to the Government

Sydney (Australia), June 26 (.).- The Australian Treasury Minister, Jim Chalmers, acknowledged this Sunday that inflation could reach 7% this year in the oceanic country, a figure that is consistent with the forecast of the Australian central bank .

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

The inflation rate stood at 5.1% in the first quarter of the year, the highest in the last 20 years, while on Tuesday the governor of the Australian Reserve Bank -the central bank-, Philip Lowe, indicated which could reach 7% by the end of 2022.

Chalmers assured that this figure “does not seem out of place” and admitted that his government, elected in the elections on May 21, will have to review the figure with a view to planning the next general budgets, scheduled for October.

The minister pointed out that he expects inflation to moderate during 2023, although he avoided venturing to specify 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 “significant increase” in inflation in the ocean country.

Economic analysts maintain that, with the current indicators, the Australian central bank will continue to increase interest rates in the coming revisions.

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