SYDNEY (Reuters) -Australian consumer price inflation slowed more than expected in May, while the closely watched core measure eased to three-and-a-half-year lows in a boost to the case for a rate cut just next month.

Inflation pressures across the Australian economy continued to abate in May, setting the stage for a third cut in interest rates by the Reserve Bank of Australia next month.

A gauge of Australia’s monthly inflation cooled faster than anticipated in May, moving close to the bottom of the Reserve Bank’s 2-3% target and bolstering the case for further interest-rate cuts.