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.

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.

The odds of an interest rate cut next month have increased, with official figures showing the Reserve Bank's preferred measure of inflation fell to 3.2 per cent over the year to December.