Today’s figures from the ABS show the price pressures in our economy continue to moderate in welcome ways.
It’s pleasing that inflation is moderating, and while we would prefer it moderate more quickly to ease pressure on household budgets, we are making progress.
The Consumer Price Index increased 6.0 per cent through the year to the June quarter 2023. This is down from the peak of 7.8 per cent through the year to the December quarter last year.
Inflation increased 0.8 per cent over the June quarter, less than half the rate of the quarterly peak that was posted in the March quarter of 2022, which was before the election.
The monthly CPI indicator further moderated to 5.4 per cent in the 12 months to June, down from 5.5 per cent in the 12 months to May.
Inflation both here and around the world is remaining higher than we’d like for longer than we’d like, but it’s tracking downwards in the right direction.
We know that high inflation and interest rate rises are continuing to squeeze household budgets.
The Albanese Government’s economic plan is focussed squarely on addressing the inflation challenge.
The combination of budget restraint, investments to lift the capacity of the economy, and targeted cost‑of‑living relief is helping ease inflation in our economy.
The Government’s number one priority is getting on top of the inflation challenge and providing cost‑of‑living relief for Australian families.
The first surplus in 15 years is also helping take pressure off inflation when the pressure is at its highest.
As a result of our responsible budget management, we have been able to deliver both a stronger budget position and provide cost‑of‑living support to Australians doing it tough.
The Government’s cost‑of‑living package provides assistance with rent, energy bills and cheaper childcare and medicines.
Much of the assistance is being rolled out right now and the benefits will continue to flow over coming weeks and months.
There will be the biggest increase to Commonwealth Rent Assistance in 30 years in September and additional support for those on JobSeeker, Youth Allowance and other payments.
We’ll also be making many common medicines cheaper from September, by allowing people to buy two months’ worth of supply for the price of a single prescription.
The cost‑of‑living relief policies are directly reducing price pressures in the economy by three quarters of a percentage point this financial year.
We’re also addressing the supply side challenges in our economy and investing in our productive capacity.
The Government is investing in more fee‑free TAFE places, supporting our small businesses to innovate and grow, and modernising our industrial base.
We know that inflation remains high but today’s data confirms we are heading in the right direction.
The Albanese Labor Government has the right economic plan to steer the economy through these difficult times, stare down the inflation challenge and deliver a better future for more Australians.
