Shillong, June 28: Australia’s Treasurer, Jim Chalmers, expressed concerns on Wednesday that no state or territory in the country is immune to economic headwinds, including the challenges posed by inflation.
During a speech, Chalmers stated that inflation, along with global challenges, will significantly slow down the economy. Growth is projected to decline from 3.25% this year to 1.5% next year.
The inflation rate is expected to decrease from 7% recorded in the March quarter of this year to 3.25% in 2023-24, before returning to the target range set by the Reserve Bank of Australia (RBA) the following year.
Chalmers acknowledged that the Northern Territory (NT) reflects the national trends in the Consumer Price Index (CPI) and has been affected by the response to inflation.
He highlighted that the 400-basis point increase in interest rates since the election last year marks the most significant tightening cycle undertaken by the RBA since the era of inflation targeting began.
Chalmers also announced that Australia’s first budget surplus in over a decade is expected to be larger than previously forecast. This improvement is driven by low unemployment rates and high commodity prices, leading to higher tax receipts.
The Treasurer welcomed the surplus, stating that it aligns with the government’s objective of rebuilding buffers and helps mitigate inflationary pressures.
Meanwhile, data from the Australian Bureau of Statistics (ABS) revealed that the rate of inflation has declined. The monthly CPI indicator rose by 5.6% in the 12 months leading up to May this year, down from 6.8% in April and the smallest increase since April 2022, according to the ABS.