Australia's devastating floods are expected to add a quarter of a percentage point to March quarter inflation, Treasurer Wayne Swan says. Swan said the disaster had wiped out a significant part of the country's food bowl, meaning prices would rise.
Swan said it was inevitable that fruit and vegetables would cost more for a while but the spike should be temporary.
Treasury estimated the disaster was likely to wipe half of a percentage point off Australia's gross domestic product in 2010-11, he said.
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