Inflation down but consumer pain lingers

Food and vegetable prices aren't rising as fast as they were thanks to better growing conditions. (Joel Carrett/AAP PHOTOS) (AAP)

A key price gauge shows cost of living pressures are easing, but the treasurer warns Australia's inflationary challenge is far from over.

Inflation fell to 6.9 per cent in the year to October after hitting 7.3 per cent in September, according to the monthly consumer price index.