Fruit and vegetable prices are expected to be 8% higher than they would have been over the December and March quarters as a result of the floods, according to budget figures released by Treasurer Jim Chalmers.
And inflation, still forecast to peak at 7.75% in the December quarter, is set to stay higher for longer, largely because of energy prices.
Tuesday’s budget will show tax receipts revised upwards by more than $100 billion over the forward estimates, predominantly due to high commodity prices and the strong labour market.
