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Treasurer Jim Chalmers says initial estimates show the Queensland floods will dampen the country’s economic growth and lead to spikes in some prices, but the government would be making a serious financial commitment to help in the recovery.

In Canberra this morning, Chalmers said the government’s primary focus was the human cost of the floods, but initial analysis showed it would likely reduce GDP in the three months to March by 0.1 per cent.

“That might not sound like a lot, but at a time when growth is not especially thick on the ground in our economy, that is not inconsequential,” he said.

Chalmers said the estimates from Treasury would be updated, but the flood-affected region accounted for about 4 per cent of agricultural production in Australia.

“We still have weather warnings, we still have communities severely impacted,” he said.

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“We have roads cut, that has implications for supply chains and for things like the delivery of groceries.”

This would likely impact the prices of some products such as bananas and sugar, Chalmers said, although would not significantly affect overall inflation.

Treasury estimates that up to 20 per cent of Australia’s banana crop could be affected.

While Chalmers said there was often a bounceback in economic growth after these events, the federal government would work closely with the Queensland government and provide substantial financial aid.