More pain could be on the way for mortgage holders and the Albanese government, with an all-important data release tipped to show ‘persistent inflation’ in the economy.
Aussie homeowners could soon be hit with more mortgage pain after this week’s all-important inflation reading, with Treasurer Jim Chalmers warning Wednesday’s figures would likely show “persistent” price pressures in the economy.
Speaking with Sky’s Weekend Business on Sunday, Mr Chalmers said while inflation had come off “quite substantially” from the peaks of 2022, he expected the June quarter consumer price index to show sticky inflation continues to roll through the economy.
“Inflation doesn’t moderate in a straight line,” he said.
“It zigs and zags a bit.”
The treasurer added he was “confident” prices would continue to “moderate” after Wednesday’s reading and come down over time. Fears of another rate hike and the negative flow-on effect on economic activity have escalated following a hotter-than-expected CPI print on June 26.
The ABS reported monthly CPI had jumped to 4 per cent in the year to May, up from 3.6 per cent in April.
Economists had expected a more modest increase of 3.8 per cent.
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