CPI inflation to reach 2.5% target in 2025/26

Australian Treasury presented the Mid-year Economic and Fiscal Outlook (MYEFO) on Wednesday, with the key highlights noted below.

2023/24 budget deficit at a$1.1 bln vs a$13.9 bln projected in May.

Budget deficit projected at a$18.8 bln in 2024/25, deficit a$35.1 bln 25/26.

Sees GDP growth in 2023/24 1.75%, 2024/25 2.25%, 2025/26 2.5%.

Sees unemployment rate at 4.25% in 2023/24 and 4.5% to 2025/26.

Sees CPI inflation at 3.75% in 2023/24, 2.75% in 2024/25, 2.5% in 2025/26.

To ensure fiscal and monetary policy settings are aligned, help ease inflationary pressures.

Sees net migration slowing to 375,000 in 2023/24, 250,000 in 2024/25.

Sees iron ore declining to $60 tonne, metallurgical coal $140 tonne, thermal coal $70 tonne.

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Source: https://www.fxstreet.com/news/australian-treasury-cpi-inflation-to-reach-25-target-in-2025-26-202312130211