Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

I thank Senator Marielle Smith for this really important question. We have had some very pleasing results out of the ABS, with their inflation data released this morning. It does show that both headline and underlying inflation have fallen to their lowest rates in almost four years. It also shows that headline inflation has now been in the band for a full year. Trimmed mean inflation was also down when we compared data from the June quarter to the March quarter.

I remind those who weren't here last term that when we came to office headline inflation had a six in front of it and was rising. It is now about a third of that. When we came to office, trimmed mean inflation was 4.9 per cent and rising. It is now almost half of that. Quarterly and monthly inflation is down, headline and underlying inflation is down, goods and services inflation is down, and tradable and non-tradable inflation is down. On all measures, we can see that substantial and welcome progress has been made in the inflation challenge that has affected all countries, particularly here. It's great to see that inflation now well and sustainably within band.

At the same time as we've been doing that, we've been getting real wages going again, living standards are increasing again, we've had two surpluses, we have got the debt down and interest rates have come down. But we know the job isn't done. There is more work to do—we acknowledge that. There are structural issues in our economy and we also recognise that people remain under significant pressure, which is why we have more cost-of-living relief rolling out the door. It's one of the reasons the Treasurer will be convening the productivity roundtable for three days next month.