Core inflation has fallen to 3.2 per cent annually, opening the door for the Reserve Bank to cut interest rates at its next ...

Aussie mortgage holders could get a rate cut as soon as February after fresh figures show inflation is falling faster than anticipated.

The sharper-than-expected decline in inflation bolsters the prospect of an interest rate cut before the federal election.

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.