New figures from the Australian Bureau of Statistic show that the monthly inflation indicator moderated 0.3 percentage points in July and the government's policies are helping.
Monthly inflation is now at a four‑month low and trimmed mean inflation has hit a six‑month low.
It's a promising result but we're not complacent because we know that people are still under pressure.
We've made welcome and encouraging progress in the fight against inflation, but we want it to moderate further and faster.
The monthly inflation indicator rose 3.5 per cent in the 12 months to July 2024, down from 3.8 per cent in the 12 months to June 2024. It was 6.1 per cent at the time of the election.
Annual trimmed mean inflation moderated to 3.8 per cent in the 12 months to July 2024, down from 4.1 per cent in June.
Non‑tradeable inflation has fallen by half a percentage point compared with last month, down from 5.0 per cent in June to 4.5 per cent in July.
Inflation is still higher than we'd like, but monthly inflation is less than half its peak and much lower than the 6.1 per cent we inherited at the time of the election.
We've seen around the world that inflation can be sticky and stubborn.
Inflation ticked up in the Euro zone and United Kingdom in the most recent data and in North America earlier in the year.
It's also encouraging to see the ABS measure that strips out some of this volatility also moderated. Monthly CPI excluding volatile items and holiday travel moderated to 3.7 per cent in July, down from 4.0 per cent in June. This is the lowest rate since January 2022.
The monthly indicator can jump around which is why the quarterly data is the official measure of inflation but the moderation in today's figures is encouraging.
The most recent June quarterly data showed the momentum of inflationary pressures was downwards, with annual underlying inflation moderating for six consecutive quarters.
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.
ABS data today again shows that inflation would be higher without our responsible cost of living relief.
Rents increased 6.9 per cent in the year to July but without our largest increase to Rent Assistance in 30 years, they would have increased 8.8 per cent.
Electricity prices fell 5.1 per cent in the year to July which is more than they would have fallen without the energy relief we are rolling out with the states. Without our rebates, they would have fallen 2.3 per cent in the year to July.
Commonwealth energy rebates began to flow in July for states already delivering their own bill relief including Queensland and Western Australia, but the rollout will pick up over the coming months.
We recognise that people are under pressure and we're doing something about it.
Our economic plan is all about tackling inflation and easing the cost of living without smashing an economy which is already weak, and today's data confirms our policies are making a meaningful difference.
