**"Inflation Mentality" Could Trigger Recession, Economist Warns**

A top economist warns that Australia faces a growing risk of recession. The danger comes from what he calls an "inflation mentality." This is a widespread belief that prices will keep rising sharply. When people and businesses expect high inflation, they act in ways that can make it worse. They may rush to buy goods now before prices go up. Companies might raise prices in advance, expecting higher costs. This behavior can create a damaging cycle. "The clock is ticking," the economist stated. He fears this mentality could soon flood the economy. If it does, it could force the central bank to raise interest rates aggressively. Such a move could severely slow economic activity and push the country into a recession. The warning highlights the fragile balance in managing the economy after a period of high inflation.