Treasurer says Australia likely to avoid recession but admits global economy is ‘dangerous’

The federal treasurer, Jim Chalmers, says Labor needs to be extremely cautious that any cost-of-living relief is not counterproductive. Photograph: Cultura Creative RF/Alamy

Jim Chalmers says Australia will likely avoid a domestic recession despite the global economy being a “dangerous place” but has warned surging power prices continue to pose problems for inflation and household budgets.

The federal treasurer on Tuesday again said major economies are heading for a hard landing as central banks attempt to curb inflation.