10 January 2024

Welcome progress in the fight against inflation

Today’s Monthly Consumer Price Index indicator shows that inflation further moderated to 4.3 per cent in the 12 months to November 2023, down from 4.9 per cent in October.

These new inflation figures show we are making welcome and encouraging progress in this inflation challenge, and the Government’s policies are helping, but the fight is far from over.

This is the best monthly outcome in almost two years – an encouraging moderation in inflation and lower than the median market expectation.

Inflation is still higher that we would like, but monthly inflation is around half of its peak and much lower than the 6.1 per cent we inherited at the time of the election.

The monthly data can jump around which is why the quarterly figures are the official measure of inflation, but the continuing moderation in today’s figures is encouraging.

Despite this welcome moderation, cost‑of‑living pressures are still the defining challenge in our economy so the fight against inflation remains the Albanese Government’s highest priority.

The Australian Bureau of Statistics has once again confirmed that our cost‑of‑living policies are helping to directly reduce inflation.

Between June and November 2023, electricity prices rose 8.8 per cent. Without our energy rebates, electricity prices would have increased 19 per cent.

In the year to November rents rose 7.1 per cent, and would have risen 8.8 per cent without the largest increase to rent assistance in 30 years.

Our plan to address inflation has multiple parts: cost‑of‑living relief, which takes some of the edge off inflation without adding to it, investing in the capacity of our economy in areas like housing, energy and skills, and getting the Budget in much better nick.

We understand many Australians are under pressure and there is still more to do – and global volatility and uncertainty is another reminder that we cannot be complacent.

But despite all the challenges coming at us, we are making encouraging progress and the Government has the right economic plan to navigate the challenges and maximise the opportunities of the year ahead.