There's hope that yesterday's better than expected inflation numbers may make the reserve bank more inclined to lower interest rates sooner. It's also welcome news for the Government, who are trying to sell changes to the stage three tax cuts.

The Prime Minister says monthly inflation now has "a three in front of it" for the first time since December 2021. He says it's "encouraging progress", but work to deal with inflation and cost of living pressure continues.

Guest: Anthony Albanese, Prime Minister