Inflation figures Australia: Major development in country's cost of living battle

Inflation has fallen significantly to a two-year low just months before lower and middle-income Australians are due to receive bigger tax cuts. This was the lowest headline inflation rate since December 2021, when it was at 3.5 per cent following the lockdowns in Sydney and Melbourne but before Russia's Ukraine invasion pushed petrol prices above $2 a litre. Inflation has fallen significantly just months before Australians are due to receive some generous tax cuts Full list of price increases in 2023 FOOD, NON-ALCOHOLIC DRINKS: Up 4.5 per cent ALCOHOL, TOBACCO: Up 6.6 per cent CLOTHING, FOOTWEAR: Down 1.1 per cent HOUSING: Up 6.1 per cent FURNISHINGS, HOUSEHOLD EQUIPMENT: Down 0.2 per cent HEALTH: Up 5.1 per cent TRANSPORT: Up 3.7 per cent COMMUNICATION: Up 2.2 per cent RECREATION, CULTURE: Up 0.5 per cent EDUCATION: Up 4.7 per cent INSURANCE, FINANCIAL SERVICES: Up 8.1 per cent Source: Australian Bureau of Statistics December quarter consumer price index annual figures The latest Australian Bureau of Statistics data has been released a week after Prime Minister Anthony Albanese announced Labor would revise his Liberal predecessor Scott Morrison's Stage Three tax cuts policy so more relief flowed to low and middle-income earners from July 1. This was the lowest headline inflation rate since December 2021, when it was at 3.5 per cent following the lockdowns in Sydney and Melbourne but before Russia 's Ukraine invasion pushed up petrol prices Transport costs rose by 3.7 per cent as average unleaded prices fell from $2.13 a litre in early October, to a low of $1.78 per litre in mid-December. The more volatile monthly inflation data had more good political news for Labor with electricity prices rising by just 0.4 per cent annually in December, marking a significant drop from 10.7 per cent in November.