New numbers show monthly inflation is around a third of what we inherited at the election and around a quarter of its peak.
This is another really encouraging sign our policies are helping to get inflation down after it was higher and rising under the Liberals.
Today’s figures show monthly inflation has remained in the Reserve Bank’s target band for three consecutive months for the first time in almost five years.
It was 2.1 per cent in the year to October 2024, unchanged from September, lower than economists expected and much lower than the 6.1 per cent we inherited.
We’re making substantial progress in the fight against inflation and today’s numbers show people would be much worse off if it wasn’t for our cost‑of‑living relief and worse off under the Coalition.
Annual trimmed mean inflation was 3.5 per cent in the year to October 2024, lower than the 4.3 per cent we inherited.
Excluding volatile items and holiday travel, monthly inflation moderated to 2.4 per cent in October 2024, down from 2.7 per cent in September.
Non‑tradable inflation was 3.0 per cent in October 2024, down from 3.5 per cent in September 2024 and much lower than the 5.3 per cent we inherited.
While we welcome the progress we’ve made in today’s figures, we recognise that doesn’t immediately translate to how people are faring and feeling in the economy.
That’s why the primary focus of the Albanese Government is to roll out responsible cost‑of‑living relief which today’s data shows has directly taken the edge off price pressures in our economy.
This was the first full month where our consecutive boost to Commonwealth Rent Assistance flowed to eligible households which contributed to a monthly fall in rents.
In the year to October, rents rose 6.7 per cent but would have increased 8.1 per cent without our back‑to‑back boosts.
Electricity prices fell 35.6 per cent in the year to October but would have fallen 2.3 per cent without the energy rebates for every household we are rolling out with the states.
We know inflation doesn’t moderate in a perfectly straight line and we see that around the world with inflation ticking up in the United States, United Kingdom, Canada and the Euro area.
These monthly figures are volatile and can jump around because not every item in the basket is updated each month.
Nonetheless, the direction of travel is clear, inflation in the official quarterly figures is moderating in welcome ways and we’re on track and on target for a soft landing in our economy.
We’re confident but not complacent about the progress we’re making.
Inflation is back in the band, our back‑to‑back surpluses are helping, and we’re rolling out responsible cost‑of‑living relief which is making a difference.
We recognise that there are pressures coming at us from here and abroad, including from higher interest rates and global uncertainty, and we’re doing something about it.
We’ve delivered the first back‑to‑back surpluses in almost two decades which the RBA Governor has said are helping in the fight against inflation.
We’ll continue to do what we can to fight inflation and ease the cost of living at the same time as we invest in our economy and get the budget in better nick.
