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.

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.

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.

Good morning. It’s Angus in Sydney with the key morning news items.Today’s must-reads:• Australia’s inflation cools• US Fed in no rush to cut rates further• New Zealand’s largest solar farm

Australia’s underlying inflation rate has fallen to 3.2%, its lowest level in three years, fueling expectations that the Reserve Bank of Australia (RBA) may reduce interest rates in the coming months.

News Corp Senior Writer Patrick Carlyon breaks down the latest data concerning Australia’s inflation numbers. “This is great news for Australians,” Mr Carlyon told Sky News host Danica De Giorgio. “These numbers do give the Reserve Bank ground to actually drop interest rates later this 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