News and politics live updates: Treasurer Jim Chalmers welcomes inflation slowing to 3.8 per cent in June

Shadow treasurer Tim Wilson says Labor’s high spending risked sparking another interest rate hike despite inflation falling to the lowest level since before the Iran war.

Economists are still expecting another rate hike in 2026 despite headline inflation for June falling to 3.8 per cent, down from 4 per cent, to be at the lowest level since February before the US strikes on Iran.

But Mr Wilson emphasised how government spending was keeping it above the Reserve Bank’s 2-3 per cent target, citing a luncheon answer from RBA governor Michele Bullock on Tuesday.

“Yesterday the Reserve Bank Governor directly linked government spending to inflation, and this data confirms the Albanese government’s spending addiction risks higher interest rates,” he said.

Ms Bullock on Tuesday confirmed that government spending was adding to overall demand in the economy.

“So, I refrain from offering advice on that, but mechanically you’re right,” she told an Anika Foundation lunch.

“It’s part of aggregate demand and that’s another way to bring aggregate demand, what do you spend less on, that’s for governments.”

Treasurer Jim Chalmers has welcomed inflation moderating to the slowest level since February before the Iran war.

Headline inflation fell to 3.8 per cent in June, down from 4 per cent in May.

“This is the third consecutive month where annual headline inflation has moderated,” he said.

“It’s an encouraging outcome that shows we’ve made progress on inflation since the Budget, even in the face of intense global uncertainty.”

Dr Chalmers noted inflation was below Treasury and Reserve Bank expectations.

“This means that inflation has come in lower than expected, lower than forecast in the Budget or by the Reserve Bank,” he said.

Australia’s inflation pace moderated before petrol relief tapered off, but it may be insufficient to stop another interest rate rise.

The consumer price index grew by 3.8 per cent in the year to June, down from 4 per cent in May.

But it has now been above the Reserve Bank of Australia’s 2-3 per cent target for the 11th straight month.

The Australian Bureau of Statistics data was taken in June before the Federal Government’s fuel tax relief was halved from 32 cents a litre to 16 cents a litre in July and extended until August 2.

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Iran has launched multiple ballistic missiles at American forces in the Middle East, shattering a brief pause in fighting as mediators tried to get both sides back to negotiations and towards a ceasefire.

US Central Command said Iran launched “an attempted surprise attack” with the missiles successfully intercepted.

CENTCOM added US forces “remain vigilant and at a high state of readiness.”

The US and Iran had experienced a brief period of calm, during which neither announced attacks for days following weeks of escalation over the Strait of Hormuz.

Iran has proposed to Oman a temporary arrangement to reopen the Strait under which one direction of traffic would pass through Iranian waters and part of the opposite route would also be in Iranian waters, Deputy Foreign Minister Kazem Gharibabadi told state television.

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Rio Tinto will share the windfall of its copper bonanza with shareholders after reporting a massive surge in first-half net profit that was underpinned by production growth of the red metal.

The mining giant on Wednesday declared a dividend of $US2.11 a share as net profit for the six months to the end of June rocketed 47 per cent to $US6.67 billion — up from $US4.53b a year earlier — as earnings before interest, tax, depreciation and amortisation leapt 28 per cent to $14.8b.

Chief executive Simon Trott described the first half of the year as “a step-change” in performance.

“Our continued investment in growth drove a 3 per cent increase in copper equivalent production and further strengthened our portfolio diversification, with copper, aluminium and lithium contributing more than 50 per cent of underlying EBITDA,” Mr Trott said.

“Our strong performance is underpinned by accelerating productivity across the business.

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Victoria Premier Ben Carroll has refused to rule out reviewing Labor’s controversial work-from-home laws or reconsidering plans for a statue of former premier Daniel Andrews, saying both issues would be dealt with through the proper cabinet process.

Speaking at his second press conference since becoming premier, Carroll also declined to commit to the future of the Suburban Rail Loop, while leaving the door open to bringing forward Melbourne Airport Rail.

“That legislation is before parliament, and I have nothing answer or say on that today,” Mr Carroll said of the work-from-home laws, adding “work from home is good for families and it is good for workers.”

On the Mr Andrews statue, he said, “I have nothing to say on that, and that is not a priority of mine.”

Addressing the Suburban Rail Loop, Mr Carroll said, “This will be a matter for cabinet, and I am going to run a disciplined proper cabinet process.”

He added, “These are matters for cabinet, everybody knows there’s not a stronger supporter of airport rail. Airport rail will electrify the north-west, it is a game changer, it has been talked about for 100 years. And as premier I am very focused on Airport Rail.”

Victoria Premier Ben Carroll has announced a new workplace protection order scheme aimed at shielding retail and public transport workers from assault, abuse, intimidation and stalking.

Unveiling the proposal alongside Deputy Premier Gabrielle Williams on his first full day in the state’s top job, Carrollunveils major protections for frontline workers said the reforms would help protect frontline staff and crack down on repeat offenders.

“Retail and transport workers keep Victoria running and they must be safe at work,” Mr Carroll said.

“These new powers will protect workers, stop repeat offenders and make it clear that this behaviour won’t be tolerated.”

If passed, the laws would take effect from July 26 next year, allowing courts to ban offenders from workplaces for up to 12 months.

Anyone who breaches an order could face up to two years in prison or fines of up to $50,000. The protections would apply across all retail businesses and specified train, tram and bus operators.

Opposition Leader Angus Taylor has declined to comment on evidence being heard by the NSW corruption watchdog after it was told senior Liberal figures discussed seeking financial backing for the conservative factional group NSW Reformers.

Mr Taylor, who is not accused of any wrongdoing, was questioned about the matter while appearing alongside Nationals leader Matt Canavan in Queensland.

Asked whether he had made any financial contribution to the group, Mr Taylor said he had not.

Pressed on whether he was aware of allegations the group was attempting to engage in branch stacking, he refused to comment on the ICAC proceedings. “I’m not a party to the proceedings. No payment was made,” Mr Taylor says.

Iran has proposed to Oman a temporary arrangement to reopen the Strait of Hormuz under which one direction of traffic would pass through Iranian waters and part of the opposite route would also be in Iranian waters, Deputy Foreign Minister Kazem Gharibabadi has told state television.

Gharibabadi said Iran rejected an Omani proposal for an equal division of transit routes between the two countries, saying such a plan did not address Iranian security concerns until long-term regional stability is achieved.

He said the Strait of Hormuz would remain closed if Oman rejected Iran’s proposal, adding that Iran had never recognised the southern route along Oman’s coast.

Gharibabadi also said Iran had made it clear to Oman that it no longer recognised the Traffic Separation Scheme (TSS), arguing that this pathway roughly in the middle of the waterway lies mostly within Omani waters and runs contrary to Iran’s need to monitor transiting vessels after being attacked by the United States and Israel in late February.

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Treasurer Jim Chalmers has held his first phone call with newly appointed UK Chancellor John Healey following last week’s leadership reshuffle under Prime Minister Andy Burnham.

Dr Chalmers said the pair discussed the close relationship between Australia and the UK, as well as shared economic and defence priorities.

“He’d have a lot on his mind and the briefing would be really intensive so it’s good of him to make time,” Dr Chalmers said.

“At a time of great uncertainty there’s no shortage of challenges in the global economy and we are more likely to rise to the occasion when friends like Australia and the UK work together.”

Dr Chalmers said he looked forward to meeting Healey in person and had heard “very good things” about him from Defence Minister Richard Marles, who previously worked alongside Mr Healey in the defence portfolio.