Treasurer Jim Chalmers is highlighting improved inflation statistics to showcase his economic leadership just days before the Federal election.
He referred to decreasing inflation rates as a “strong indication” of the progress “Australians have accomplished together,” noting that underlying inflation has dropped below 3 percent for the first time in three years.
Headline inflation remained stable at 2.4 percent annually as of March, while the RBA’s preferred trimmed mean rate saw a significant decline from 3.3 percent to 2.9 percent, indicating ongoing advancements toward its target.
Mr. Chalmers expressed his satisfaction with the new statistics, attributing some credit to his Government’s leadership.
“This is a strong indication of the progress that Australians have made together under Labor regarding inflation and the broader economy,” he stated.
“This reflects the responsible economic management that has characterized this Albanese Labor Government.
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“Under Labor, inflation is low, real wages are increasing, unemployment rates are down, debt levels are reduced, our economy is showing solid growth, and interest rates are also starting to fall.”
“Inflation was significantly higher and climbing rapidly when we assumed office, and now it’s lower, much lower, and underlying inflation has again decreased in the latest figures we see today.”
Economists have cautioned that high government spending growth is creating pressures on inflation, even as temporary power bill rebates have made the situation appear more favorable.
Mr. Chalmers mentioned that while he wouldn’t “forecast or preempt” the Reserve Bank’s decisions, market predictions still suggest impending rate cuts.
“The market strongly believes that more interest rate cuts are forthcoming, and I see nothing in these numbers that would significantly change their expectations,” he noted.
“The market anticipates between four and five additional cuts this year, which could save Australian mortgage holders hundreds of dollars each month.”
When questioned if his “quite cheerful” demeanor indicated the end of the battle against inflation, Mr. Chalmers said he’s generally “relatively cheerful” due to his optimism about the national economy.
“I am proud of the progress Australians have achieved together, especially regarding inflation,” he remarked.
“It’s evidence of the significant progress we’ve made together and proof of the responsible management we have demonstrated in an uncertain environment.”
“Considering the challenges the world presents, every Australian should take pride in our advancements during Labor’s stewardship.”
Before the recent inflation figures were released on Wednesday, shadow treasurer Angus Taylor anticipated continued fluctuations in the numbers.
“Historically, after a rise in inflation that dissipates, it’s common to see another surge soon after. We must remain vigilant,” he warned.
“We are genuinely concerned that we could enter a phase of not only slow economic growth but also a potential resurgence of inflation, which is why strategic economic management, reducing waste, minimizing red tape, and fostering growth and investment is vital to finally overcome inflation and achieve the growth we need after 21 consecutive months of GDP per capita contraction.”
