Treasurer Jim Chalmers says he’s “confident the worst of inflation is behind us”, but “substantial challenges” remain after Australia’s annual inflation rate eased to 7.4% in January, down from 8.4% in December. It’s better than analysts had predicted – but falling inflation is unlikely to see the Reserve Bank ease up on rate hikes when it meets next Tuesday. That’s because Australia’s economic growth isn’t meeting expectations. During October-December, the economy grew by 0.5% – over the year, Australia’s economy grew 2.7%, which is below the government’s target of 3%. The result was driven by Aussies tightening their belts as we dip further into our savings. Economists say a significant economic downturn is looking “increasingly possible” – keep in mind that in 2023, Australia’s economy is expected to grow by 1.5%, which is quite a bit slower than where we are now.