Cyclone Alfred will cost the March 25 budget at least A$1.2 billion, hit growth and put pressure on inflation, Treasurer Jim Chalmers says.
In a Tuesday speech previewing the budget, Chalmers will also say that on preliminary estimates, the cyclone’s immediate hit to GDP is expected to be up to $1.2 billion, which could wipe a quarter of a percentage point off quarterly growth.
“It could also lead to upward pressure on inflation. From building costs to damaged crops raising prices for staples like fruit and vegetables,” Chalmers says in the speech, an extract of which has been released ahead of delivery.
