One of the biggest factors in inflation – rents – rose from an annual rate of 6.6 per cent to 7.1 per centreflecting low vacancy rates and a tight rental market. In monthly terms,rent prices rose by 0.7 per cent after a 0.4 per cent decrease in October.

The bureau’s head of prices statistics,Michelle Marquardt,said without the increase in Commonwealth Rent Assistance,introduced in September,rents would have increased 8.8 per cent over the year.

Electricity prices rose 10.7 per cent in the 12 months to November,reflecting increases in wholesale prices,partly offset by the introduction of energy rebates for eligible households from July 2023.

Marquardt said annual inflation for food and non-alcoholic beverages remained elevated for most categories but that fresh food such as meat,seafood,fruit and vegetables recorded lower inflation because of favourable weather conditions.

The latest figures come after Prime Minister Anthony Albanesewarned supermarkets to pass savings on to consumers,and declared a new review would explore all options on the table,including significant government intervention,to bring grocery prices down.

Chalmers,speaking in Cairns about the review,said he wanted to make sure the grocery market was operating as intended. “We are coming at this inflation challenge from every angle,” he said. “Part of that is making sure that we can get a fair go for families and farmers.”

Marquardt said the annual price increase of 4.3 per cent in November was the smallest annual increase since January 2022.

However,shadow treasurer Angus Taylor said inflation was still too high and that the Albanese government was failing to take meaningful action on the cost of living. “Australians are looking down the barrel of another tough year,” he said.

“This week,the Treasurer’s been patting himself on the back for wages growth of 4 per cent. But that means nothing when the price of everything else has gone up much higher. Real disposable incomes are at an eight-year low,and living standards have fallen the most out of any OECD nation.”

Independent economist Nicki Hutley said while the data showed inflation was heading in the right direction,the trimmed-mean figure (an average calculated after removing a portion of the largest and smallest values) was higher than the headline inflation figure at 4.6 per cent.

“You don’t want to get too excited,too early,” she said. “Things like utilities,rents,house prices,insurance,all the usual suspects,are staying very sticky and high.”

However,she said there were broadly some more positive signs in the services sector,which Reserve Bank governor Michele Bullock said in November would show the degree to which inflation remained a “homegrown and demand‑driven issue”.

Hutley said she was “reasonably confident” about there not being a rate rise next month.

“The RBA is looking for things that would be an upward surprise,and this[the inflation figures],clearly,is not that,” she said.

The Reserve Bank,in its November statement on monetary policy,flagged inflation was forecast to decline to 3.5 per cent by the end of 2024,but that the forecast decline was more gradual than anticipated three months ago.

“Domestic inflationary pressures are dissipating more slowly than previously thought,” the bank said.

“Goods inflation is expected to continue falling in the near term as the resolution of supply disruptions flows through to prices paid by consumers. By contrast,services inflation remains high.”

Chalmers said he was prepared to consider additional cost-of-living relief measures in the May budget.

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