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.

Inflation in Australia remained in retreat in the final 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.

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.

Australia’s headline inflation rate dropped to a three-year low of 2.4% in the December quarter, according to the Consumer Price Index, adding to pressure for an interest rate cut by the Reserve Bank as soon as next month.