Chalmers warns of budget cuts from global turmoil but sees no Australian recession

Australian Treasurer Jim Chalmers has warned of "very substantial and intensifying" economic pressures on the federal budget, but insists the government is not planning for a recession. He is preparing to identify further spending cuts ahead of the mid-year budget update in December. Chalmers attributed rising inflation to the protracted Middle East conflict and the private sector, noting inflation jumped to 4% in August from 3.5%, with the Reserve Bank raising its key interest rate to 4.6%. He challenged critics of government spending to name specific services to cut, after $44.9bn in savings were already identified in May. Shadow treasurer Tim Wilson called for Chalmers' dismissal, accusing him of stoking inflation for tax windfalls, while Assistant Minister Andrew Charlton warned a recession would cause devastating unemployment. Chalmers will travel to Japan to boost investment and fuel security.