Sliding inflation builds hopes of interest rate cut

Home buyers hope favourable inflation figures will encourage the Reserve Bank to cut rates again. (Lukas Coch/AAP PHOTOS)

All signs point to an interest rate cut in May, with inflation on the right track as the monthly consumer price figure heads lower.

The index fell 10 basis points to 2.4 per cent in the year to February after holding at 2.5 per cent for two months.