New figures show that headline and underlying inflation fell last month.
This is more positive and promising news that shows we're making progress together in the fight against inflation.
Monthly inflation fell to 2.4 per cent in the year to February 2025.
Annual trimmed mean inflation fell to 2.7 per cent.
Today's headline result was below the median market expectation.
Inflation was high and rising when we came to government and now it's much lower and falling.
Headline inflation has been at or below the midpoint of the Reserve Bank's target band for six consecutive months.
Underlying inflation has been below three per cent for three consecutive months.
This is even more proof that inflation continues to moderate in our economy.
The Budget we handed down this week continues the fight against inflation and shows that Treasury now expects inflation to return sustainably to the target band six months sooner - in the middle of this year, rather than at the end.
Today's result is a reminder of our substantial and sustained progress in the fight against inflation.
Under Labor, inflation is down, wages are up, unemployment is low, interest rates have started to come down and we've topped up our tax relief to give every taxpayer two new tax cuts from next year.
We know that these monthly numbers are volatile and can bounce around but the direction of travel on inflation is clear.
On the official quarterly measure, inflation under Labor is almost a third of the 6.1 per cent we inherited. Australia's inflation is now lower than most major advanced economies.
While most other advanced economies have paid for progress on inflation with much higher unemployment, growth going backwards, or a recession, we've managed to preserve the progress we've made in our labour market while inflation has come down.
Electricity prices fell 13.2 cent in the year to February but would have fallen only 1.2 per cent without the energy rebates for every household we are rolling out with the states.
Rents rose 5.5 per cent in the year but would have increased 6.8 per cent without the recent increase to Commonwealth Rent Assistance.
Even with this substantial progress, we know people are still under pressure and that's why our cost‑of‑living help is so important.
We're delivering two new tax cuts that will put an average of about $50 a week back in taxpayers' pockets when combined with our tax cuts from 2024.
Our Budget is all about helping with the cost of living and finishing the fight against inflation, strengthening Medicare and building Australia's future.
