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Treasury Estimates That Inflation Has Peaked

AUSTRALIA

Treasury secretary Kennedy has said that inflation peaked at 7.8% in Q4 2022. He also said that Treasury is estimating that the government’s coal and gas price caps would reduce inflation by 0.5pp in the year to June 2023.

  • Treasury’s retail gas price forecasts have been revised down from October’s 20% in FY23 and 20% in FY24 to 18% and 4% respectively.
  • Kennedy also noted that 85% of CPI components were still rising by over 3%.
  • Treasury continues to expect growth in FY23 to be 1.5%.
    - The Australian

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