CANBERRA, ACT, April 29 -- The Treasurer of Australia issued the following media release:
New figures from the Australian Bureau of Statistics show that inflation ticked up as expected in the month of March largely because of global pressures.
These numbers show Australians are paying a hefty price for the war in the Middle East.
These are the costs and consequences of a conflict on the other side of the world.
It's another reminder that from an economic point of view, an enduring end to the war can't come soon enough.
In the monthly data, headline inflation was 4.6percent in the 12months to March 2026, up from 3.7percent in February.
Trimmed mean monthly inflation remained at 3.3percent in the 12months to March 2026.
In the quarterly data, headline inflation was 4.1percent through the year to the March quarter 2026, up from 3.6percent in the December quarter 2025.
Trimmed mean inflation was 0.8percent in the March quarter, to be 3.5percent through the year. This compares to 0.9percent in the December quarter, and 3.4percent through the year.
Automotive fuel rose 32.8percent in March, to be up 24.2percent through the year. In the year to February, fuel fell 7.2percent. The impact of fuel alone is adding 0.8 percentage points to annual headline monthly inflation.
This data captures the first month of the conflict and the front end of another very challenging period in the global economy.
Australians didn't choose this war but we choose how we respond, with decisive action to slash the fuel excise and help with the cost of living and with a responsible Budget in less than twoweeks' time.
These figures are before the government's temporary cut to the fuel excise took effect but they show why it is necessary.
Since we halved the fuel excise, we've seen petrol and diesel prices fall by at least 70cents in most capital cities and this shows how important that fuel excise relief is for the next couple of months.
Our fuel excise cut has been a factor taking the sting out of fuel prices and that's reflected in the movement in fuel prices in April.
We recognise that diesel prices in particular are still higher than we'd like and that we've seen global oil prices spike again in recent days and that will impact prices at the bowser.
The headline monthly figure in the data today was slightly below what the market expected.
While we already had an inflation challenge in our economy before the conflict, the tick up in the monthly headline data today was driven by the conflict and this war could drive inflation up even higher before it comes back down.
We've seen the war play out in headline inflation today, and we know it will increasingly be reflected in other measures of inflation in the coming months.
Treasury's expectation is that inflation could peak higher than this, but they are still finalising their forecasts ahead of next month's budget.
What we've seen today comes after data earlier in the month which showed increases in inflation across every major advanced economy- in Canada, France, Germany, Italy, Japan, the US and the UK.
Despite the rapid rise in fuel prices, inflation remains much lower than we inherited.
When we came to office, headline inflation was north of sixpercent and rapidly rising, it's now much lower than that.
Underlying inflation was around fivepercent but it is now much lower.
We understand that people are under pressure which is why we are rolling out responsible cost of living relief including two rounds of tax cuts for every taxpayer, a $1000 instant deduction, cuts to the fuel excise and cheaper medicines.
The Australian economy is not immune from global uncertainty and volatility, but we're well placed and well prepared to confront it with faster growth than any major advanced economy, low unemployment and solid wages growth.
Earlier this month, new data from the IMF showed that Australia is expected to have one of the three strongest budget positions in the G20 next year.
The bottom line is $233.5billion stronger than we inherited and that's possible because we have found $114billion in savings and reprioritisations, kept average real spending growth low and banked the majority of revenue upgrades.
Despite all of this progress, we know there's more work to do and that's why there'll be more savings and more restraint in May's Budget.
This Budget will be focused on fuel security and supply chain resilience, addressing inflation, boosting productivity and managing global economic uncertainty.
It will be a responsible Budget which balances the pressures in the here and now with our intergenerational obligations.
Disclaimer: Curated by HT Syndication.
