Prime Minister Scott Morrison has defended his government's economic record amid growing expectations the Reserve Bank will slice interest rates just ahead of the May 18 election to stimulate the economy.

Pressed on poor inflation figures, which have prompted markets to expect the Reserve Bank will cut rates twice this year to a new record low of 1 per cent, Mr Morrison tried to deflect to the falling cost of services such as childcare and the lift in total employment.

Scott Morrison has defended the government's economic record as expectations is growing that the Reserve Bank will cut interest rates. Credit:AAP

The Australian Bureau of Statistics this week showed consumer inflation at zero through the March quarter, taking annual inflation down to 1.3 per cent. That followed recent GDP figures showing the economy slowing sharply through the past six months.

On Friday, the bureau reported business inflation falling to 1.9 per cent with early measures of price pressures down to 0.1 per cent through the March quarter.