Australia Warns Inflation May Top 5% Amid Middle East Conflict, Plans Emergencies

Australia's Treasury, led by Treasurer Jim Chalmers, forecasts inflation could exceed 5% due to the impact of the ongoing Middle East war on oil and supply chains. This elevated inflation poses risks to living standards and economic growth, prompting preparations of emergency measures reminiscent of Covid-19 responses, especially in critical sectors like construction and medicine. Moving forward, policymakers will monitor inflation trends closely while managing fuel shortages and pursuing international trade agreements, including with the EU.