Inflation to shape Budget as Mardi Gras route listed and US tariff on exports stays at 10%
Higher-than-expected inflation will be the central challenge shaping this year’s federal budget, Treasurer Jim Chalmers says, as new figures show underlying prices rose to 3.4 per cent in January and the Reserve Bank continues to prioritise core measures in assessing its next move.
Chalmers told ABC Radio the government is taking the data seriously as it finalises its budget strategy, signalling pressure for additional savings despite broader policy ambitions. The figures have sharpened the political debate. Nationals MP Bridget McKenzie criticised the Treasurer’s management of the economy, arguing the latest numbers reflect excessive government spending and urging a shift in course in the budget to rein in costs.
She warned households are under pressure and said the data strengthens the case for possible interest rate increases. In trade policy, Trade Minister Don Farrell said the United States will keep its 10 per cent baseline tariff on Australian goods following a US Supreme Court ruling.
He noted President Donald Trump had flagged a lift in global tariffs to 15 per cent after the court found existing 10 per cent measures unlawful, but said Australian officials were told the rate would remain unchanged for Australian exports. “We saw over the weekend that the figure was supposed to be 15 per cent, which was certainly the figure President Trump announced over the weekend.
But in discussions with my counterpart’s office, they have confirmed the figure remains at 10 per cent,” Farrell told Channel Nine. On international security, Iran’s Foreign Minister Abbas Araghchi said Tehran could reach an equitable nuclear deal with the United States as talks resume in Geneva.
He said Iran remains committed to the Non‑Proliferation Treaty and its right to use nuclear technology for peaceful purposes, adding that Tehran is prepared to address concerns while seeking sanctions relief. US Vice President JD Vance countered that he has seen evidence to the contrary, saying Iran cannot have a nuclear weapon and claiming there is evidence it has tried to rebuild one.
In cultural news, the Sydney Gay and Lesbian Mardi Gras parade route has been added to Australia’s National Heritage List. The two‑kilometre route through central Sydney marks the site of the original 1978 protest and its role in the marriage equality movement and broader campaigns for reform.
The Albanese government approved the listing after a nomination by the Heritage Council of NSW, acknowledging the struggle faced by the 78ers and Mardi Gras’ enduring place in Australia’s history. Meanwhile, Winter Olympic gold medallist Cooper Woods said the scale of his Milan‑Cortina triumph has finally sunk in after a rousing welcome home at Sydney Airport.
Woods, who claimed an unexpected gold at the Winter Games, reflected on the support he received as he returned to Australia.