Australian Treasurer Chalmers in response to today’s higher than expected inflation data:

Chalmers says

• he expects inflation to peak around the same level (as shown in the data today) at the end of the year
• don’t expect the inflation forecast to change markedly

Chalmers will be referring to Treasury forecasts.

I admire his confidence. If treasury forecasts are as bad as (also confident) Reserve Bank of Australia inflation forecasts have been in the past it could be a rough ride ahead for Australia. Hope I am wrong.

AUD/USD update: