With the federal election just days away, Treasurer Jim Chalmers has pointed to improved inflation figures as a testament to Labor's economic leadership.

Recent data from the Australian Bureau of Statistics reveals that trimmed means inflation has dropped to 2.9%, the lowest rate in three years, while underlying inflation has fallen below 3% for the first time in that period.

Chalmers emphasized that when Labor took office, underlying inflation was at 4.9%, showcasing a significant reduction since then.

He further noted that under Labor, inflation is low, real wages are increasing, unemployment remains low, debt has decreased, and economic growth is on the rise.

Expressing optimism, Chalmers stated that Australians should take pride in the economic progress made under Labor's management during challenging times.

He also mentioned market expectations for four to five additional interest rate cuts this year, which could provide substantial savings for mortgage holders.

In contrast, the Liberal Party has criticized Labor for allegedly exacerbating inflation through excessive spending, arguing that average inflation was lower during their nine years in power.

Shadow treasurer Angus Taylor cautioned that while current inflation figures are favorable, they may fluctuate, urging for careful economic management to avoid future surges.

Concerns have also been raised by S&P Global regarding Australia's public spending reaching post-war highs, warning that election commitments could threaten the nation's credit rating.

Both major parties are making significant financial commitments in their election campaigns, with Labor claiming to have identified an additional billion dollars in savings to support its pledges.

Prime Minister Anthony Albanese dismissed S&P Global's warnings, facing criticism from the opposition, particularly from Taylor, who questioned his leadership capabilities.

The Coalition has yet to revise its spending commitments but is required to publicly disclose its costings at least 48 hours before the election.