Australians are being squeezed by the rising cost of living in the economy Labor has created, with inflation now climbing again. This isn’t accidental, it reflects policy choices that continue to leave households worse off. Wages aren’t keeping pace, and everyday essentials are becoming harder to afford.
New data from the Australian Bureau of Statistics confirms inflation rose to 4.6 per cent over the year to March, the highest in more than two years.
Member for Wannon, Dan Tehan said that while global pressures, including the conflict in Iran, are playing a role, Australia has been left more exposed due to poor decisions on energy and economic management.
“Australia’s inflation remains higher than other major advanced economies, sitting 1.3 percentage points above countries like the United States and the United Kingdom. Even without international disruptions, inflation here was already too high, pointing to a problem driven at home,” said Mr Tehan.
Underlying inflation, which excludes volatile items like fuel, rose to 3.5 per cent in the March quarter, its third straight increase and still above the Reserve Bank’s target range. At the same time, government spending has surged, adding further pressure to inflation and household budgets.
“After nearly four years of Labor, Australians are paying significantly more for essentials,” said Mr Tehan. “Insurance is up 42 per cent, energy 38 per cent, rent more than 23 per cent, health 17 per cent, education 21 per cent, and food 17 per cent.”
Inflationary pressures are not easing:
• Annual CPI rose to 4.6% in the 12 months to March 2026, up from 3.7% in February, the highest in over two years.
• CPI increased 1.1% in March alone.
• Quarterly inflation reached 4.0% in March 2026, unchanged from December 2023.
• Underlying inflation rose to 3.5% in the March quarter, above the RBA’s 2–3% target for the third consecutive quarter.
• Australia’s inflation is 1.3 percentage points higher than comparable advanced economies.
Mr Tehan said that while international events may have a temporary impact, the core inflation challenge will remain.
“Unless the Government reins in spending and addresses the underlying drivers, households will sadly continue to fall behind at the checkout and on their mortgages,” he said.
—Ends—
Contact: Sandie Gustus M | 0408 564 232 E | sandie.gustus@aph.gov.au
