Rebound fears as energy help flicks switch on inflation

Power bill relief from the federal government has helped lower costs and the rate of inflation. (Jono Searle/AAP PHOTOS)

Lower-than-expected inflation figures are being trumpeted as a sign government cost-of-living relief measures are working, but households have been warned prices could rise again.

Inflation dropped to its lowest level in almost three years, to 2.7 per cent in the year to August compared to 3.5 per cent in July.