Inflation is tipped to hit a 32-year high on Wednesday when the Australian Bureau of Statistics releases the latest Consumer Price Index data, setting the scene for Treasurer Jim Chalmers to paint a dire picture of the economy in a statement on Thursday.

Economists expect Wednesday’s Consumer Price Index release to show prices rose by 1.9 per cent in the June quarter, taking annual headline inflation to 6.3 per cent, its highest level since December 1990. The Reserve Bank of Australia is forecasting inflation to hit 7 per cent by the end of the year.