CANBERRA, ACT, June 24 -- The Treasurer of Australia issued the following media release:
New figures from the Australian Bureau of Statistics show headline inflation fell in both monthly and annual terms.
Inflation came off substantially in the month of May and moderated in annual terms.
This is the second consecutive month that headline inflation has moderated.
Today's data was much better than market expectations and forecasts.
Headline inflation fell 0.7 per cent in the month of May 2026, down from a rise of 0.4 per cent in April.
Headline inflation was 4.0 per cent in the 12 months to May, down from 4.2 per cent in April.
We already had an inflation challenge in our economy but the war is making it higher than it would otherwise be.
The initial impact on inflation from the conflict came from fuel, but we see it broadening today in other areas such as dwelling construction costs.
Trimmed mean inflation was 3.6 per cent in the 12 months to May, compared to 3.4 per cent in April.
Automotive fuel fell again in the month, demonstrating the important role of the Government's cut to the fuel excise. Automotive fuel fell 11.9 per cent in the month but was still 7.7 per cent higher in through the year terms.
The extension and tapering of the fuel excise cut this week provides cost of living help and recognises there is still uncertainty in the Middle East and the costs and consequences of the war will play out for some time.
We've seen inflation tick up around the world in the most recent data including in Canada, the United States and Europe but it has come down again here.
Inflation remains much lower than we inherited.
When we came to office, headline inflation was north of six per cent and rapidly rising, it's now much lower than that.
Underlying inflation was around five per cent but it is now much lower.
We understand people are under pressure which is why we are rolling out responsible cost of living relief including cutting taxes five times in three ways, cheaper medicines and extending the cut to the fuel excise.
From next week, more than 14 million Australian taxpayers will get another tax cut, the National Minimum Wage will increase by 6 per cent, we're extending paid parental leave, and around 2.6 million Australians will benefit from regular indexation of social security payment rates and thresholds.
Our economy is not immune from global uncertainty and volatility, but we're well placed and well prepared to confront it with faster growth than almost every major advanced economy, booming business investment, low unemployment, solid wages growth and stronger public finances.
The Budget we handed down last month delivered smaller deficits, less debt and net policy decisions that improve the bottom line to help to take the pressure off inflation.
We've made a lot of progress in the economy, but there's more work to do because people are still under pressure.
That's why the Government is focused on helping with the cost of living, addressing inflation and building a more productive and resilient economy.
Disclaimer: Curated by HT Syndication.
