An economic outlook the world was waiting to hear. But is it good news for Australia?

While the IMF forecast inflation in most countries will lower, Australia's is predicted to stay high.

Australian dollar coins and banknotes in Melbourne, Thursday, April 4, 2024. (AAP Image/Joel Carrett) NO ARCHIVING Credit: JOEL CARRETT/AAPIMAGE

Key Points

• The International Monetary Fund predicts Australia's inflation will rise from 2.8 per cent to 3.6 per cent by the end of next year.
• The IMF's economic forecast on Australia has sparked strong reactions from Canberra.
• With the federal election only a few months away, the cost of living crisis is expected to be a major issue for both major parties.