New data from the Australian Bureau of Statistics (ABS) reveals that headline inflation has dropped to 2.8 per cent, the lowest level in nearly four years.
Treasurer Jim Chalmers highlighted the new figures as evidence of the government’s progress in tackling inflation, which stood above 6 per cent when they took office.
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“If you take a moment to consider this data alongside other economic indicators, it’s clear that inflation has more than halved under our watch, and real wages are starting to rise again,” he said.
The figures indicate that underlying inflation also shows improvement, with trimmed mean inflation falling to 3.5 per cent for the year ending September 2024, down from 4.0 per cent in the previous quarter.
Monthly inflation has dropped to 2.1 per cent, a notable reduction from 2.7 per cent in August.
Despite these encouraging numbers, non-tradable inflation decreased to 4.1 per cent, while services inflation slightly increased to 4.6 per cent.
Shadow Treasurer Angus Taylor said that temporary subsidies have been used to artificially reduce the inflation rate.
“We still have a long way to go in the fight for a strong, low-inflation economy in this country.”
Government officials said the main focus is to manage inflation responsibly without jeopardising growth.
With back-to-back budget surpluses, officials believe these measures contribute to the improved inflation landscape.