Cyclone Alfred's $1.2 Billion Blow: How It Will Impact Australia's Budget

Cyclone Alfred is expected to cost the Australian economy $1.2 billion, with significant impacts on the upcoming federal budget.

Treasurer Jim Chalmers has warned that the cyclone will contribute to inflation by driving up the cost of essential goods like fruit and vegetables due to damaged crops. The disaster will also increase building costs, further straining household budgets. The government is set to address these economic challenges in next week's budget announcement, which comes ahead of a federal election.

Chalmers will preview the budget's response to the cyclone's financial toll in a speech in Brisbane.