Monthly CPI shows inflation continues to moderate

The ABS’s monthly CPI indicator rose 4.9 per cent in the 12 months to July, the lowest outcome since February 2022.

This is down from 5.4 per cent in 12 months to June and much lower than the peak of 8.4 per cent in the year to December 2022.

This is an encouraging result but we know Australians are still under the pump.

Our economic plan is focused on easing inflation in our economy, so today’s data is very welcome news because it shows we are making progress.

In quarterly terms, inflation peaked in March 2022, before the election. In annual terms, it peaked at 7.8 per cent through the year to the December quarter last year and moderated to 6 per cent in the year to the June quarter.

It’s pleasing to see inflation is moderating but we know it will remain higher than we’d like for longer than we’d like.

In today’s monthly CPI indicator, electricity prices increased 6 per cent in the month of July, but without the Albanese Government’s energy bill relief that we’re delivering in partnership with the states, the Australian Bureau of Statistics estimates electricity prices would have increased 19.2 per cent over the same period.

This data makes it very clear our energy price relief plan is working as intended by helping to take some of the sting out of power price rises when people need it most.

Inflation remains the primary challenge in our economy and that’s why the primary focus of the Albanese Government is rolling out billions of dollars in assistance to take some of the edge off cost‑of‑living pressures without adding to inflation.