(Bloomberg) -- Australia’s center-left Labor government has seen its support fall despite a bump in personal approval for Prime Minister Anthony Albanese, as households feel the pinch from sticky inflation and the highest interest rates in 12 years.

The latest Newspoll survey published in The Australian newspaper on Sunday showed Labor’s vote drop to 51% on a two-party preferred basis, down from 52%, while support for the center-right Liberal National coalition jumped to 49%, up one point.

The drop in support for the ruling group came despite a steady improvement in Albanese’s personal approval ratings, rising one point to 44% while his disapproval remained stable at 51%. Overall, the prime minister had a net approval of minus 7, his best result since October.

The poll results will likely stoke fear among senior ministers that the government could lose its majority in Parliament at the next election due by May 2025. Currently Albanese holds power in Australia’s House of Representatives by a razor-thin majority of three seats.

Support for both major parties has been on the decline in recent decades, with a larger share of the vote going to third parties such as the left-wing Greens and independent lawmakers.

Albanese would likely be able to hold power if forced into a minority government at the next election. However, relying on the support of minor parties and independents would complicate his legislative agenda.

The Labor government will be hoping for strong economic news over the next 12 months, which could boost its popularity ahead of a potential election early next year, including interest-rate cuts in the second half of 2024.

A protracted rate hiking campaign by the Reserve Bank of Australia has slowed economic growth to a crawl, with the cash rate currently sitting at 4.35%, its highest level since 2011.

--With assistance from Swati Pandey.

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