The New Zealand government this week reduced fuel excise taxes by 25 cents per litre for three months. And Australian Treasurer Josh Frydenberg has indicated the Australian Budget due on the 29th March will include a package to help ease the rising cost of living. But given the Australian government’s desire to begin reducing the budget deficit, we expect that package to be modest. And even a large reduction in fuel excise taxes would not prevent Australian inflation from reaching the highest level in years over the coming quarters. That’s why we expect the RBA to begin its hiking cycle in June.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services