IMF Warns Australia Set For One Of Highest Inflation Rates In Developed World

"The International Monetary Fund (IMF) says Australia is on track to have one of the highest inflation rates in the developed world.
It predicted that Australia’s GDP growth would remain flat this year at 2025’s level of 2.0 percent and would fall in 2027 to 1.7 percent.

While declining to offer his own forecast of GDP, John Quiggin, professor of economics at the University of Queensland, said he agreed that the Australian Labor government’s cut to fuel excise was “giving the wrong signals.”
“The only merit is that it is temporary,” he said. It is due to end in 3 months.
Graham Young, executive director of the Australian Institute for Progress, said the government was giving “a masterclass in how to repeat the 1970s and 80s and turn a price increase into an inflation increase.
“On its own, the oil price will redirect spending largely from non-essentials to fuel, but if the government tries to soften the hit, and they do that without corresponding savings somewhere else, then it will turn into inflation,” he explained." ZH