Annual inflation ticked up for a third straight month in December as food, energy costs rose, CPI report showed. But underlying price measure eased.

Core inflation in Australia has fallen to a better-than-expected 3.2 per cent, boosting hopes of an interest rate cut.

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 annual inflation rate eased to 2.4% in the fourth quarter, down from 2.8% in the previous period and below expectations of 2.5%. Core inflation, the RBA’s preferred inflation gauge, fell to a three-year low of 3.

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.

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