Federal Budget 2026: A ‘modest’ package but could it push inflation higher? Economist explains

Treasurer Jim Chalmers has handed down his fifth federal budget, introducing higher taxes on investment properties and some trust funds, while offering workers a new $250 tax break in return. But will these measures genuinely ease cost-of-living pressures, or could they add to inflationary pressures instead? How might unemployment figures shift in the wake of the budget, and could rising fuel costs increase the likelihood of another interest rate hike? Here’s what economist Nalini Prasad says.