Inflation to spike, oil supply plenty: Chalmers

While Treasurer Jim Chalmersº¹ did not rule out that inflation could hit as much as 5%, he is confident that Australia will not run out of fuel off the back of the Middle East crisis.

- Karren Vergara

National Australia Bank has predicted that inflation could reach 5% by June. Commenting on this possibility, Chalmers told Sky News that it depends not just on the severity of this price shock coming out of the Middle East, but also its duration.

"We run a number of scenarios as well, just like the private banks do, we've got a couple of months to finalise the Treasury forecast for the Budget in May, and so obviously we are working through scenarios and contingencies like this pretty much every day as we try and land these forecasts for the Budget," he said.