The Reserve Bank of Australia’s preferred measure of underlying inflation has dipped below 3 per cent for the first time in more than three years, opening the door to a probable interest rate cut in May after the federal election.

But inflation over the past three months was a bit higher than the market expected and picked up from a low point in the December quarter, prompting economists to warn that the RBA would be cautious about unleashing a flurry of rate cuts this year.