Treasurer Jim Chalmers seizes improved inflation figures to spruik own economic leadership

Treasurer Jim Chalmers has seized on improved inflation figures to spruik his own economic leadership just days out from the Federal election

Falling inflation rates are a “powerful demonstration” of the progress “Australians have made together” he said as underlying inflation fell below 3 per cent for the first time in three years.

Headline inflation held steady at 2.4 per cent annually to March, while the RBA’s preferred trimmed mean rate dropped sharply from 3.3 per cent to 2.9 per cent, signalling sustained progress toward its target.

Mr Chalmer’s said he was “really pleased” with the updated figures, partly credited, he said, to his Government’s leadership.

“This is a powerful demonstration of the progress that Australians have made together under Labor on inflation and on the economy more broadly as well,” he said.

“This is proof of the responsible economic management which has been a defining feature of this Albanese Labor Government.

“Under Labor, inflation is low, real wages are growing, unemployment is low, we’ve got the debt down, growth is rebounding solidly in our economy and interest rates have started to come down as well.

“Inflation was much higher and rising very sharply when we came to office, and now it is lower, much lower, and underlying inflation has fallen once again in these numbers that we are seeing today.”

Economists have warned high government spending growth has added pressure to inflation, even as power bill rebates temporarily made the numbers look more flattering.

Mr Chalmers said while he wouldn’t “predict or pre-empt” decisions by the Reserve Bank, market forecasts still pointed to looming rate cuts.

“The market has a very firm view that there are more interest rate cuts on the way, and I don’t see anything in these numbers that would substantially alter their expectations,” he said.

“The market is expecting somewhere between four and five additional interest rate cuts this year, and if that eventuated, that would deliver hundreds of dollars every month to Australians with a mortgage.”

Asked whether his “quite chipper” appearance was a sign the war on inflation was over, Mr Chalmers said he was “always relatively chipper” with optimism about the nation’s economy.

“I’m proud of the progress that Australians have made together and I find that the progress on inflation has been especially encouraging,” he said.

“It’s a demonstration of the progress we’ve made together, it’s proof of the responsible way that we’ve been going about managing the economy in uncertain times.

“With everything that the world is throwing at us, I think every Australian can be proud of the progress we’ve made together on Labor’s watch.

Speaking on inflation before the latest figures were released on Wednesday, shadow treasurer Angus Taylor expected numbers to continue to fluctuate.

“If we look at history, very often a surge of inflation, if it fades away, you see another surge not long afterwards. We have to be on alert for this,” he said.

“We’re deeply concerned that we’re going into an era where, not only will we continue to see very sluggish economic growth, that we could see a resurgence of inflation and that’s why economic management, cutting waste, slashing red tape, boosting growth and investment, is so essential to making sure that we finally beat inflation and we get the growth we need after 21 consecutive months of GDP per capita going backwards.”