28 February 2024

Inflation at its lowest in more than 2 years

Today’s Monthly Consumer Price Index Indicator shows annual inflation of 3.4 per cent in the 12 months to January 2024.

This is the equal lowest in more than two years and much lower than the 6.1 per cent that we inherited when we came to office.

The direction of travel is clear: inflation is moderating helped by the Albanese Government’s cost‑of‑living policies.

Inflation is still too high but we are making welcome progress.

Inflation is moderating in encouraging ways but we know it’s not mission accomplished because people are still under the pump.

Today’s result is consistent with annual quarterly inflation, which moderated to a two‑year low of 4.1 per cent at the end of 2023.

Labor's key objective is to help Australians earn more and keep more of what they earn at the same time as we put downward pressure on inflation in our economy.

We're focused on getting wages moving and giving every taxpayer a cost‑of‑living tax cut from July 1.

Today’s figures show our policies are taking some of the edge off the cost of living and putting downward pressure on inflation.

The Australian Bureau of Statistics again confirmed that the Albanese Labor Government’s key cost‑of‑living policies are playing a central role in moderating inflation.

“The introduction of the Energy Bill Relief Fund rebates for eligible households from July 2023 has mostly offset electricity price rises from annual price reviews in July due to increases in wholesale prices,” the ABS said in a statement.

Annual electricity prices rose 0.8 per cent in the 12 months to January 2024. Excluding the rebates, electricity prices would have increased 15.3 per cent.

Rents rose 7.4 per cent in the 12 months to January 2024, but would have risen 9.1 per cent without our boost to Commonwealth Rent Assistance.

Today’s data confirms that we have 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.