Jim Chalmers is hoping for an end to inflation

However, the coalition dismissed the Treasurer’s comments as “spin”, with Dutton suggesting he is laying the groundwork for the Government to abandon the controversial Stage 3 tax cuts.

“The Treasurer is trying to give all sorts of twists to the May budget and is trying to prepare Australians for the end of the tax cuts. But the fact of the matter is Australians are having a tough time at the moment and it’s going to get even tougher under Labor over the next 12 months,” Dutton told Sky News.

“Australians are making it tough at the moment and it’s going to get tougher under Labor over the next 12 months.”

Opposition leader Peter Dutton

“They are making decisions, including on energy policy, that will push up their bills and create a lack of reliability in the system.”

AMP Capital chief economist Shane Oliver said he expected quarterly figures for December to show inflation of around 7.5 percent, below the RBA’s original forecast peak of 8 percent but still on track highest level since the early 1990s.

“I think we’re likely to see inflation fall below 4 percent later this year and that reflects the easing of global inflationary pressures,” Oliver said.

“There is still a long way to go and there will still be some issues as we go through this year, in particular we may still see more electricity price increases despite government intervention. But I think the pressure on the cost of living will ease as the year progresses.”

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