Australian consumer prices dipped month-on-month in January, dragged lower by a slowdown in housing costs and a drop in holiday travel, an outcome that should help reassure policymakers that inflation is heading in the right direction.

Australias consumer prices dipped in January, offering relief to policymakers aiming to curb inflation. Data from the Australian Bureau of Statistics showed the monthly Consumer Price Index (CPI) fell 0.

The RBA board trimmed the cash rate last week, but families struggling with cost of living pressures are hoping for more.

Annual growth in Australian consumer prices held steady in January as a rise in electricity costs was offset by a slowdown in the important housing sector, an outcome that should reassure policymakers that inflation is heading in the right direction.