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Strong jobs figures may be a "good surprise" for Treasurer Jim Chalmers, but they give weight to a possible interest rate rise.

Economists say the prospects of the Reserve Bank lifting rates again on August 1 are an even bet.

The jobless rate held steady in June at 3.5 per cent - close to its lowest level in almost five decades.

Incoming Reserve Bank governor Michele Bullock has indicated unemployment needed to sit at 4.5 per cent to get inflation back under control.

But Dr Chalmers said the jobs figures were reassuring.

"The fact our jobs market has been really quite remarkably strong has been a good kind of surprise," he told ABC Radio on Friday.

"Our jobs market is really holding up despite the economy slowing considerably elsewhere."

The treasurer said the central bank would weigh up many factors beside unemployment numbers before making its next rates decision.

"They'll have the opportunity to consider the jobs market but also in the context of all of these other indicators that show that our economy is slowing," he said.

"There's a big difference here between the technical definition which feeds a forecast, which is what Michele Bullock was talking about, and our broader aspirations and objectives."

St George economists said markets were pricing a 47 per cent chance of a rate hike, following the strong jobs report.

"This is up from around a 30 per cent chance at the start of the week," they said on Friday.

"There will likely be more conviction on the call after next week's June quarter inflation data."

CommSec economists expect the annual growth rate of headline CPI, to be released on Wednesday, will ease from seven per cent to 6.2 per cent in the June quarter.

The monthly CPI indicator is predicted to ease from 5.6 per cent in May to 5.4 per cent in June.

This is still well outside the Reserve Bank's target band of two to three per cent.

Deloitte Access Economics forecasts suggest the central bank has already lifted rates too far in the fight against sources of inflation over which it has minimal influence.

The group has repeatedly urged the central bank to end its tightening cycle and maintains it has done too much.

The Reserve Bank opted to keep interest rates on hold in July at 4.1 per cent.

Deloitte's Stephen Smith said most inflation in the system had been fuelled by supply-side issues such as global shipping costs, a disorderly energy transition and disruptions to construction - none of which responded readily to higher interest rates.

Additionally, the full force of the 400 points of increases is yet to be felt.

"Overall, the profile for the normalisation of inflation is achievable with the monetary policy decisions already taken," Mr Smith said.

The economist said improved tax, productivity and competition policy should be a government focus.

Liberal frontbencher Sussan Ley said making the economy more productive, through such policies as making electricity more affordable and reliable, was key.

"Or, unfortunately, we're going to have a Reserve Bank that continues to raise interest rates," she told Seven.

© AAP 2023

One of the nations biggest prison kitchens has been caught cooking up some criminality, with a drug distribution network busted by authorities.

Methamphetamine, steroids and tobacco are among the contraband worth an estimated $500,000 found hidden in boxes of paper at a prison at Windsor, in northwest Sydney.

The acting governor of Geoffrey Pearce Correctional Centre suspects the items were delivered by a mule, who was captured on CCTV unloading the boxes and dumping them at the kitchen loading dock.

The site prepares and distributes thousands of inmate meals across the state each week.

"Our cook-freeze kitchen prepares food for inmates in every corner of the state - there's no reason for boxes of paper to be left there," Renee Craft said on Friday.

"Our specially trained officers knew something was amiss and subsequently stopped the contraband from making its way into the prison network."

Officers seized the boxes on May 31 and the drugs were destroyed.

The haul included 3.2kg of tobacco, 1111 tablets (steroids and unknown substances), 304 strips of buprenorphine, 140 packets of tobacco rolling papers, 200ml of anabolic steroids and 44g of crystal methamphetamine.

Corrective Services has a zero tolerance for banned items entering prison sites, Commissioner Kevin Corcoran said.

"Our officers have exceptional skills and instincts, and are well-trained to detect these items, whether it's in boxes, on a person or secreted," he said.

© AAP 2023

Drinkers are facing another hike in the cost of liquor with Australia's tax on spirits set to tip over the $100 per litre mark for the first time.

Already paying some of the highest taxes on spirits in the world, Australians are being warned to expect further cost increases.

Distillers and spirits manufacturers are calling for a freeze on alcohol excise rises as the price peaks at a milestone it had not been expected to hit before 2029.

The excise tax on spirits increases twice yearly in line with the Consumer Price Index (CPI).

The latest excise increase follows hikes of 4.1 per cent last year and another 3.7 per cent in February.

Australian Distillers Association chief executive Paul McLeay said the increases were unsustainable and it was crucial to support the industry comprising more than 600 distilleries - primarily small family-owned businesses in regional areas.

"If the government is serious about building a broader, deeper industrial base and the creation of manufacturing jobs in the regions, it must reconsider this punitive excise regime that disincentivises producers to invest in and grow their businesses," he said.

The tax hike compounded industry-wide challenges, he said.

"Unfortunately, we have already witnessed a few insolvencies this year, and this latest spirits tax increase will be extremely difficult for distillers to stomach," Mr McLeay said.

Australia already has the third-highest spirits tax in the world, Spirits and Cocktails chief executive Greg Holland said.

"Approaching the $100 per litre threshold six years earlier than previously forecast must surely give the Federal Government pause to reconsider this handbrake on the spirits industry.

"Australia already has the third-highest spirits tax in the world. These automatic excise increases can't continue unchecked. If not now, when will it stop?" Mr Holland said.

Diageo Australia, the company behind Queensland's iconic Bundaberg Rum Distillery, said the current tax regime was becoming "unbearable".

"We know our loyal Bundy consumers love our product, but many of them don't know that more than 60 per cent of the money they already pay for a bottle of Bundaberg Rum UP goes straight to the taxman in Canberra, and that tax keeps growing and growing," managing director Angus McPherson said.

© AAP 2023