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17 March 2025 | Other

Australian Treasurer warns about possible acceleration of inflation due to Cyclone Alfred

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Australian Treasurer warns about possible acceleration of inflation due to Cyclone Alfred

Australian Treasurer Jim Chalmers warned that consumer prices could rise in the country after Cyclone Alfred.

The Australian economy lost an estimated $759 million as a result of the disaster, according to initial government estimates. This could wipe a quarter of a percentage point from quarterly GDP growth and is likely to quicken inflation, Chalmers said.

Increasing consumer prices pose a challenge for both consumers and the government, striving to ease rising living costs ahead of the upcoming parliamentary elections, Bloomberg explains.

According to the Treasurer, the 2025–2026 budget will include no less than $759 million in costs and provisions. These will be used to provide help for affected people and businesses.

Elena Dorokhina MarketCheese

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