Annual inflation rose to 6.8 per cent in the year ended April, from 6.3 per cent previously, monthly data published by the Australian Bureau of Statistics last week showed.

But Dr Chalmers says inflation is past its peak.

“It’s really clear that inflation peaked in our economy around Christmas time,” he told ABC Radio this morning.

“It’s been moderating since then – not as fast as we would like, it is more persistent than we want it to be.”

The treasurer said while monthly inflation had risen, the surprise jump was driven by variable factors.

Both Treasury and the Reserve Bank of Australia also believe inflation is on the way down.

“Principally, the timing of the (petrol) excise change last year impacted the monthly figure, which is volatile and bounces around,” Dr Chalmers said.

“The quarterly inflation numbers the one that they watch – it’s been moderating since Christmas, and that’s important, but we’d like it to moderate faster.”

In the March quarter, annual inflation was 7 per cent. The next set of quarterly data isn’t due until July 26.

Dr Chalmers also said high inflation was not the result of workers on the minimum wage getting a pay rise. ‘

Last week, the Fair Work Commission lifted the award wage by 8.6 per cent.

The new pay rates will come into effect from July 1, giving some workers an extra $1.85 an hour.

The industrial umpire lifted the minimum wage by 5.75 per cent but due to a technical tweak, it amounts to an 8.6 per cent base rate lift for the lowest-paid workers.

“Our inflation problem is not because the lowest paid workers are getting paid too much … it’s because of a war in Ukraine and busted supply chains and a decade of neglect,” Dr Chalmers said.

“We also want to make sure that when, particularly, the lowest paid workers are bearing disproportionately the brunt of these cost of living pressures that they get the return on their effort that they need and deserve to support their loved ones.”

-AAP