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

Nationals leader Matt Canavan says he would have rejected an offer of a paid European trip after One Nation leader Pauline Hanson revealed mining billionaire Gina Rinehart covered her flights from London to Sicily, via Rome, as well as tickets to a luxury fashion parade in Italy.

Senator Hanson updated her parliamentary register of interests on Tuesday, confirming she personally paid for her accommodation, meals and other daily expenses during the July 11 to 16 trip.

Speaking to Channel Nine, Mr Canavan said he would have declined the offer.

“If a large benefactor offered me a holiday I’d say, ‘Look, I’d prefer you just put that money into changing the government because that’s what our country needs,’” Mr Canavan says.

“The economy is in a really dire strait. Small businesses, some real estate agents I spoke to are just pulling their hair out. They’re working really hard. They obviously can’t afford these holidays over to the Mediterranean.”

Inflation data could dash the chances of another Reserve Bank rate hike as governor Michele Bullock says higher interest rates are slowing the economy down as intended.

Underlying inflation has held above the central bank’s target of 2.5 per cent since the COVID-19 pandemic.

Analysts expect data to be released by the Australian Bureau of Statistics on Wednesday will show the Reserve Bank’s preferred trimmed mean measure climbed even higher to 3.7 per cent in the June quarter.

The past four years of above-target inflation had been a cautionary tale for the Reserve Bank board, Ms Bullock said on Tuesday.

“The longer it is out of target, the more concerned that the board becomes,” she told a fundraising lunch at the Anika Foundation in Sydney.

“I think it is quite at the front of their minds. In the May forecast we had it coming back under three (per cent) towards the end of 2027, and that’s a long time to be above target.”

Ms Bullock said if the oil price shock from the Middle East conflict dragged on and expectations of price pressures became more ingrained, she was concerned the Reserve Bank’s job of bringing inflation under control would become even harder.

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Fears of another interest rate rise have emerged after Reserve Bank governor Michele Bullock warned the central bank is prepared to raise rates again if needed, as Australia’s inflation remains stubborn.

Appearing on Sunrise on Wednesday morning, Employment and Workplace Relations Minister Amanda Rishworth was forced to defend the Albanese Government’s handling of the economy, while Nationals Senate leader Bridget McKenzie argued Labor’s spending had left the Reserve Bank with little choice but to keep interest rates higher for longer.

Ms Bullock’s warning comes ahead of key inflation data due to be released on Wednesday, with economists expecting underlying inflation to remain above the Reserve Bank’s target range.

Asked whether the Government should be doing more to bring inflation down, Ms Rishworth stressed that interest rate decisions were a matter for the Reserve Bank’s independent board.

“We are doing what is in our power to support Australians when it comes to cost of living, when it comes to being responsible with the Budget and improving productivity,” she said.

Ms Rishworth pointed to recent Budget measures aimed at boosting productivity, including investment in skills and permanent free TAFE, while acknowledging inflation had remained higher than hoped amid difficult global economic conditions.

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