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Budget forecasts faster inflation drop than expected by RBA as government defends figures: Chalmers

From abc.net.au

{video} Tomorrow's budget will predict inflation under 3 per cent by Christmas, but also a slower-than-expected economy, as the federal government battles competing tasks of spurring growth and reining in rising costs. The inflation figure is more optimistic than that predicted by the Reserve Bank of Australia, which Finance Minister Katy Gallagher says is because yet-to-be-announced budget measures will take pressure off inflation. "I think the Treasury forecast has been made mindful of all of the decisions that we've taken in our budget, it is going to be a responsible budget," Ms Gallagher said. "It's ... (full story)

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