Australian Inflation Hits Four-Year Low as Treasurer Declares 'Substantial Progress'

Australian inflation dropped to 2.1% in the latest monthly data, marking the lowest rate in four years and achieving a historic milestone of six consecutive months within the Reserve Bank's target range, Treasurer Jim Chalmers announced Tuesday.

The headline inflation figure fell from 2.4% in the previous month, while underlying inflation decreased to 2.4% from 2.8%, Chalmers told reporters in Brisbane following the release of the monthly inflation data.

"This is the lowest that inflation has been for years," Chalmers said. "It's the lowest headline inflation since the beginning of 2021. It's the lowest underlying inflation since the end of 2021."

The six-month streak represents the first time inflation has remained within the Reserve Bank's target range for such an extended period since monthly records began, according to the Treasurer.

"This means that the progress we're making together on inflation is substantial and it means that it's sustained," Chalmers said. "These are very welcome developments."

The inflation data exceeded market expectations, with economists anticipating higher figures than those released Tuesday. Services inflation also declined, with notable improvements in insurance and rent sectors.

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