Underlying inflation dropped to its lowest rate in three years in the December quarter, strengthening the case for a pre-election rate cut next month.

Australia's CPI inflation slows to 2.4% YoY in Q4 2024, driven by government rebates. Click here to find out what investors need to know.

Inflation in Australia remained in retreat in the last quarter of 2024, stoking the case for the central bank to join the global easing cycle by cutting rates at its coming meeting in February.

Australian consumer prices rose at the slowest pace in almost four years in the December quarter, while a pullback in housing costs helped cool core inflation and open the door to a cut in interest rates as early as next month.

Australias consumer price index (CPI) inflation grew less than expected in the fourth quarter, signaling a slowdown but still remaining above the Reserve Bank of Australias (RBA) target range. Data from the

The annual trimmed mean gauge of consumer prices, which shaves off volatile items, rose 3.2% in the three months through December, compared with an expected 3.3% gain.

Financial markets are betting the Reserve Bank will preview a rates reprieve in February, with official figures showing the RBA's preferred measure of inflation fell to 3.2 per cent over the year to December.

Financial markets are near certain that the Reserve Bank will cut interest rates in February, after the latest CPI data showed underlying inflation is falling back to its target more rapidly than forecast.