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The budget is already adding to inflation
John KehoeEconomics editor
The federal budget has already injected $22 billion of new policy spending into the economy over two years, which economists say will cause higher interest rates than necessary and delay any rate cuts by the Reserve Bank of Australia.
Treasurer Jim Chalmers insists his third budget on Tuesday will not add to current inflation pressures because much of the new Future Made in Australia and other spending will not be front-loaded and will largely be deferred to future years.
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