Labor is closing the gap on the Coalition as the party most trusted to handle the signature issue of the cost of living, according to a new poll that also shows Prime Minister Anthony Albanese has his nose ahead in the race to form government.

The latest Australian Financial Review/Freshwater Strategy poll, conducted in the aftermath of last week’s federal budget and Albanese calling the May 3 election on Friday, shows the cost of living continues to far outweigh every other issue of voter concern.