No recession but inflation hike and increased cost-of-living pressure on the way, Jim Chalmers says

Economists predict RBA will raise interest rates this week and in May – days before treasurer unveils budget Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Households can expect significant additional cost-of-living pressures because of the war in the Middle East, with Jim Chalmers confirming that the government expects inflation to rise beyond 4. 5% in Australia. But the treasurer said he did not expect the economy to fall into recession because of the war sparked by US and Israeli bombings in Iran.