Treasury Predictions: Inflation to Return Below 3 Percent by December, Falling Further in 2025

Mr. Chalmers said the budget will be tackling inflation while easing cost-of-living strains.

Federal Labor Treasurer Jim Chalmers speaks during a press conference in Perth, Australia on Feb. 20, 2024. AAP Image/Richard Wainwright

Australians could soon breathe a sigh of relief as federal budget forecasts reveal inflation may temper a year earlier than previously predicted.

Treasury predictions in the budget, which will be handed down on May 14, show inflation dropping to 2.75 percent by December.