The latest inflation data underscores the pressure facing household budgets across Australia.

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Australians continue to feel the cumulative impact of higher prices across much of their everyday spending. For a government considering cost-of-living measures that provide genuine relief without fuelling further inflation, there are few policies as effective as making essential medicines more affordable.

Following successive reductions to the maximum patient co-payment in 2023 and 2026, Australians have saved more than $1.4 billion on PBS medicines.

In its first term, the Albanese government made history, reducing the cost of medicines for the first time in the 75-year history of the PBS - cutting the general co-payment from $42.50 to $30.

On January 1 this year, to deliver on Labor's election commitment, the Prime Minister acted again to make the general co-pay just $25. If action hadn't been taken in 2023 and 2026, the maximum price of medicines would have been $51.10.

Prescription medicines are now at their most affordable level since 2004 - a time when Ian Thorpe won five gold medals at the Athens Olympics, the Nokia flip phone was a must-have and the Holden Commodore was Australia's top-selling car.

This year alone, Australians have saved more than $130 million after the reduction of the general co-payment to $25 on January 1. All Australians need it to remain frozen.

The success of this policy highlights an important economic principle: not all cost-of-living measures are created equal.

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Some forms of assistance increase disposable income in ways that can stimulate aggregate demand and contribute to inflationary pressures. Others directly reduce the price of essential goods and services. Cheaper medicines fall firmly in the latter category.

Freezing the PBS co-payment at........

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