Australia’s inflation rate to peak at 7.75% in December quarter, economic update predicts

Treasurer Jim Chalmers tells parliament that nation is facing a once-in-a-generation' challenge and real wages won't grow until 2023-24 fiscal year

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Australia's inflation will peak at an annual rate of 7.75% by the December quarter of 2022 and fall gradually, allowing wage growth to begin providing workers with real salary increases by the 2023-24 fiscal year, the treasurer, Jim Chalmers, has said in his economic statement.

Describing the nation as facing both once-in-a-generation" challenges and opportunities, Chalmers used his statement to parliament on Thursday to provide updated economic forecasts as well as reiterate priorities for the new government.