No recession but inflation hike and increased cost-of-living pressure on the way, Jim Chalmers says

Economists predict RBA will raise interest rates this week and in May – days before treasurer unveils budget

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Households can expect significant additional cost-of-living pressures because of the war in the Middle East, with Jim Chalmers confirming that the government expects inflation to rise beyond 4.5% in Australia.

But the treasurer said he did not expect the economy to fall into recession because of the war sparked by US and Israeli bombings in Iran.