Budget to Provide Practical Home Help | Liverpool City Champion
Treasurer Josh Frydenberg said his fourth budget will provide practical measures to ease cost-of-living pressures as the government prepares for a federal election in May.
While he was light on details in a series of television interviews on Sunday, Mr Frydenberg said Tuesday’s budget would contain responsible and practical measures, and he does not expect him to increase the pressure inflationary.
“There will be a number of measures in the budget that get to the heart of the cost of living issue,” Frydenberg told ABC television.
But he warned that inflation would pick up due to soaring fuel and food prices due to the war in Ukraine, and that this would be reflected in budget forecasts.
Annual inflation was 3.5% in December.
Economists expect the budget to show a much improved bottom line, alongside significant updates to forecasts for growth, wages and inflation, and an unemployment rate that should be well entrenched below of 4%.
Rising cost of living pressures and shaky consumer confidence could dampen retail spending after being a key part of Australia’s economic recovery from the Delta COVID-19 variant late last year.
The Australian Bureau of Statistics will release retail trade figures for February on Tuesday, with consensus among economists pointing to a 0.9% increase after January’s 1.8% increase.
Confidence has declined further in recent weeks due to flooding along Australia’s east coast and growing inflation concerns.
The ANZ-Roy Morgan weekly consumer survey is also released on Tuesday.
Last week, confidence fell to its lowest level since September 2020, while consumer inflation expectations hit an 11-year high of 6% as the price of gasoline climbed above $2 a liter.
Once the fiscal dust settles, the Australian Bureau of Statistics will release building approvals for February and job vacancies for the three months ending in February on Thursday, while the Reserve Bank will release credit data for the past month. .
Notably, economists expect building approvals to post a strong 10% rebound in February, after plummeting 27.9% in January due to staffing shortages at council offices during the outbreak. of Omicron and higher than usual use of statutory holidays.
The week ends Friday with the CoreLogic home value index for March, as well as the ABS’ February lending indicators.
Meanwhile, Australian stocks are set to start the week strong after major US equity indices closed mostly higher on Friday.
However, uncertainty remains for investors as they try to determine the likely course of inflation and the global economy as the fallout from Russia’s invasion of Ukraine continues to be felt. .
The S&P 500 rose 22.90 points or 0.5% to 4,543.06, the Dow Jones Industrial Average gained 153.30 points or 0.4% to 34,861.24 and the Nasdaq fell 22, 54 points or 0.2% at 14,169.30.
Australian equity futures rose 33 points or 0.44% to 7413.
On Friday, Australia’s benchmark S&P/ASX200 closed up 9.2 points, or 0.12%, at 7,387.1.
Australian Associated Press