A lack of inflation in the latest quarter shows the Australia economy is "running on empty", according to Labor leader Bill Shorten.
But Scott Morrison insists inflation is only one of a number of metrics that indicate how the economy is travelling.
The prime minister also believes Australians will be relieved that electricity prices have dipped.
Fresh figures from the Australian Bureau of Statistics show there was zero growth in the consumer price index - which measures how prices have risen across the economy - in the three months to March.
The index slowed down to 1.3 per cent in the 12 months to March 31, after running at 1.8 per cent in the year to December.
Economists had expected the index would stand at 1.5 per cent in the year to March.
That was already below the Reserve Bank of Australia's two per cent to three per cent inflation target, boosting the chances the central bank will cut the interest rate in the near future.
Mr Shorten says the lack of inflation in the March quarter shows people are closing purses because they are spending their household savings just to make ends meet.
"That is not a healthy number. What that means is that we are going down and down and down," he told reporters in Townsville on Wednesday.
"If there's no inflation in this quarter, that tells you this is an economy running on empty.
"It shows you that people have stopped spending money. And do you know why they've stopped spending money? Because wages aren't moving."
The prime minister said that the Reserve Bank will keep "looking at" the inflation figures, but stressed that it not all they are keeping their eye on, with other metrics such as employment growth looking strong.
"The economy is a mixture of these figures. That's what will all be weighed up," he told reporters in Darwin.
Mr Morrison stressed there is good news in the figures, with electricity costs falling by 0.6 per cent in the quarter.
"I think Australians would very much welcome that."
Australian Associated Press
