New figures from the Australian Bureau of Statistics show that headline inflation moderated in February.
While we've seen inflation tick down today, it was too high before the war and the conflict in the Middle East will make it worse.
Headline inflation was flat in the month to be 3.7 per cent through the year, down from 0.4 per cent in the month and 3.8 per cent through the year in January.
Underlying inflation was 0.2 per cent in the month to be 3.3 per cent through the year. Compared to January, the monthly number moderated from 0.3 per cent while the annual number was unchanged.
Our inflation challenge reflects a mix of both temporary and persistent factors, including the end of energy rebates.
Treasury estimates that around three quarters of the increase in inflation since the middle of last year to the beginning of this year reflects temporary factors.
While inflation has been higher than we'd like for longer than we'd like, it's much lower than what we inherited.
When we came to office, inflation was north of six per cent and absolutely galloping, it's now a lot lower than that.
Underlying inflation was around five per cent, now it has a three in front of it.
We recognise people are still under pressure, which is why we're rolling out responsible cost of living relief and taking action to shore up fuel supply and ensure Australians are getting a fair go at the bowser.
This includes new legislation introduced today that will double penalties for petrol price misconduct.
We're rolling out tax cuts for every taxpayer, slashing student debt, cheaper medicines and more bulk billing.
At the same time, we're getting the budget in better shape. The budget is more than $233 billion better than we inherited and we've found more than $114 billion in savings and reprioritisations since coming to office.
The Australian economy is not immune from global uncertainty and volatility, but we're well placed and well prepared with faster growth than any major advanced economy, low unemployment and solid wages growth.
The Albanese Government's three main economic priorities are addressing inflation, productivity and resilience, and global uncertainty and today's figures show why that's the right approach.
