While headline inflation increased from 3.6 per cent in the March quarter to 3.8 per cent in the June quarter, underlying inflation declined slightly. That's welcome news for the Albanese Government, with economists predicting interest rates will be left on hold at the next RBA meeting. 

Federal Treasurer Jim Chalmers says while inflation is "persistent" and remains "stubbornly high", it's heading in the right direction - which he says shows Albanese Government's strategy is working.

• Guest: Jim Chalmers, Federal Treasurer