Australia’s inflation rate retreats to two-year low fanning hopes next RBA move will be a rate cut

CPI came in at 4.1% in the December quarter, easing from the September quarter pace of 5.4%

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Australia's inflation retreated to a two-year low in the December quarter as food and fuel prices increased at a slower pace, fanning hopes the next move by the Reserve Bank will be an interest rate cut.

The consumer price index came in at 4.1% in the final three months of 2023 compared with a year earlier, the Australian Bureau of Statistics said on Wednesday. Economists had expected CPI to come in at 4.3%, easing from the September quarter pace of 5.4%.