Compared with the same period a year earlier it rose 3.2%, below both the consensus for a 3.3% rise as well as the central bank’s most recent forecast of a 3.4% increase.Trimmed mean inflation in the third quarter was 3.

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.

A larger than expected drop in inflation data has boosted the chances of an interest rate cut as soon as February.

The chance of a Reserve Bank rate cut in February has improved considerably after underlying inflation came in below expectations for the December quarter.