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.

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.