Australia sees CPI inflation at 5% in 2025/26, 2.5% through 2029/30

Following are the highlights of Australia's 2026/27 budget and the Treasury's key economic forecasts released on Tuesday, per Reuters.

• Australia sees 2025/26 budget deficit at A$28.3 bln vs a$36.8 bln projected.
• Australia sees 2026/27 budget deficit at A$31.5 bln, 2027/28 deficit A$31.0 bln.
• Australia sees net debt rising to 21.9% of GDP in 2029/30, gross debt to 35.6%.
• Australia sees GDP growth at 2.25% in 2025/26, 1.75% 2026/27, 2.25% 2027/28.
• Australia sees CPI inflation at 5% in 2025/26, 2.5% through 2029/30.
• Australia Treasurer Chalmers: This budget helps, rather than harms, the fight against inflation.
• Australia sees unemployment rate at 4.25% in 2025/26, 4.5% in 2026/27 and 2027/28.

Market reaction

The AUD/USD showed no immediate reaction to the budget announcement and was last seen trading at 0.7220, losing 0.4% on the day.