Treasury has ‘real confidence’ government relief measures will drive down inflation

Former Labor senator Stephen Conroy says Treasurer Jim Chalmers has set a “bold prediction” for inflation. Mr Chalmers predicted inflation will be two to three per cent by the end of the year, differing from the Reserve Bank’s projections. “If you look at the measures that were taken around energy relief last year, you can see that they’ve fed directly into what was already a reducing inflation,” Mr Conroy said. “Treasury and the Treasurer have got real confidence that these measures on rental, on energy relief, will have a direct impact on that inflation number and drive it down faster than the Reserve Bank want to accept or acknowledge.”