The Albanese government’s first budget and third quarter inflation figures will dominate the economic agenda this week with futures markets pointing to a rise for the ASX on Monday following a strong close on Wall Street.

The Dow Jones Industrial Average rose 748.97 points, or 2.47 per cent, to 31,082.56, the S&P 500 gained 86.97 points, or 2.37 per cent, to 3,752.75 and the Nasdaq Composite added 244.87 points, or 2.31 per cent, to 10,859.72.

Australian futures rose 95 points, or 1.42 per cent, to 16,980.

The budget will be handed down on Tuesday and despite rising cost of living pressures, is not expected to contain immediate spending stimuli that might fuel inflation.

KPMG economist Sarah Hunter expects spending commitments to be staged over time so as not to provide stimulus right away.

“Also, spending increases will ideally be matched with savings elsewhere - so any plans to increase wages for aged care workers or increase defence expenditure, for example, would see reduced spending in other areas,” Dr Hunter said.

The national statistics bureau will drop the September quarter inflation figures the day after the budget.

Headline inflation hit 6.1 per cent in the June quarter and is still expected to peak at 7.75 per cent, according to up-to-date Treasury forecast, despite the inflationary effect of floods in southeast Australia.

ANZ economists expect annual core inflation to hit 7 per cent in the third quarter and the trimmed mean to reach 5.6 per cent.