New Zealand shares post biggest weekly jump since Nov; Australia closed

* NZ50 snaps 4-day rally

* NZ50 posts best week in nearly 3 months

* Australian market closed for public holiday

Jan 26 (Reuters) - New Zealand shares posted their biggest weekly jump since early November on Friday but ended the session lower dragged by banks and utilities, while investors awaited a key U.S. inflation reading to gauge the Federal Reserve's monetary policy outlook.

The S&P/NZX 50 index slid 0.1% to close at 11,875.03, snapping a four-session rally. The benchmark rose 1.8% this week.

The Australian market was closed for a public holiday.

Later in the day, U.S. personal consumption expenditure data - the Fed's preferred measure of inflation - will be released, just a day after data showed the economy grew faster than expected in the fourth quarter.

Analysts at Westpac expect the Fed's monetary policy easing to precede the Reserve Bank of New Zealand's (RBNZ) easing.

Traders are now pricing in a 52% chance of a rate cut in March, down from 88% a month ago, according to CME FedWatch Tool.

In domestic data, December quarter consumer inflation came in line with expectations earlier this week, continuing to track towards the Reserve Bank of New Zealand's target range.

"The Q4 CPI result ... overall confirms inflation is easing in New Zealand," said Christina Leung, principal economist at New Zealand Institute of Economic Research.

"However, given annual inflation remains well above the RBNZ's inflation target band, the central bank should remain vigilant about continued inflation pressures in the economy."

Banks were the top losers, with the New Zealand-listed shares of Westpac Banking Corp and ANZ Group dropping 0.4%, each.

Among utilities, Meridian Energy and Contact Energy lost 2.6% and 0.2%, respectively.

Healthcare products distributor EBOS Group emerged as the top loser on the benchmark, falling 2.3%, its biggest drop in two weeks.

Steel distributor and processor Vulcan Steel, however, climbed 4.4%, its biggest gain since Sept. 11 and was the top gainer on the benchmark index. (Reporting by Aaditya Govind Rao and Sneha Kumar in Bengaluru; Editing by Rashmi Aich)