New figures from the ABS show that headline and underlying inflation have both fallen to their lowest rates in almost four years.
Data released today was better than expected and confirms both headline and underlying inflation were in the RBA's target band in the June quarter 2025.
Monthly headline inflation is just below the band at 1.9 per cent and at its lowest since early 2021.
This is welcome and encouraging news.
It's an outstanding result which confirms we are sustainably in the band with substantially lower inflation.
Under Labor, inflation is falling, unemployment is low, real wages and living standards are growing again, more than 1.1 million jobs have been created, debt is down, the economy is growing and interest rates are falling.
New numbers from the Australian Bureau of Statistics show headline inflation was 2.1 per cent through the year to the June quarter 2025, down from 2.4 per cent through the year to the March quarter 2025.
It means headline inflation has now been in the band for a full year.
This is a powerful demonstration of the progress we have made together.
Treasury's Budget expectation was for Australia to be sustainably in the target band by the middle of this year and that's exactly what we see in these figures.
Trimmed mean inflation was 2.7 per cent through the year to the June quarter 2025, down from 2.9 per cent in March 2025.
When we came to office, headline inflation was 6.1 per cent and rising, it's now about a third of that.
When we came to office, trimmed mean inflation was 4.9 per cent and rising, it's now almost half of that.
Monthly inflation is down to 1.9 per cent and monthly underlying inflation is now near the bottom of the band at 2.1 per cent.
The moderation in services inflation is one of the biggest reasons why inflation has sustainably returned to the target band.
Services inflation was 3.3 per cent through the year to the June quarter, the lowest rate in three years. That is around its long‑term average.
We've made a lot of progress in the economy but there's more to do because the global environment is uncertain, structural issues in our economy are persistent, and people are still under pressure.
That's why our economic plan is all about providing responsible cost of living relief and responsible economic management at the same time.
ABS data shows that the government's cost of living polices took a quarter of a percentage point off inflation.
In the year to the June quarter 2025, electricity prices fell 6.2 per cent and would have risen 1.7 per cent without the energy rebates we're rolling out with the states.
In the year to the June quarter 2025, rents rose by 4.5 per cent - without increases in Commonwealth Rent Assistance, they would have risen by 5.7 per cent.
There's still more to do which is why the government's focus in this first sitting fortnight has been all about legislating more responsible cost of living relief, from slashing student debt to making medicines cheaper.
As the IMF pointed out this week, upside risks to the global inflation outlook remain and inflation is rising in the US, Canada, New Zealand and the UK.
Economic uncertainty and volatility are prominent and defining features of the outlook around the world but all the progress we have made together holds us in good stead.
The best defence against global volatility and the best way to lift living standards is with a more productive economy, a stronger budget, and more resilience.
That's why we're building consensus on long term economic reform around these three priorities.
