Last year, inflation surged in the September quarter thanks to the initial impact of the carbon tax and higher prices for fruit and vegetables. But data out today shows that spike collapsed in the December quarter.

In fact, inflationary pressures eased noticeably in the three months to December, taking pressure off consumers and opening the way for the Reserve Bank to cut rates again if it feels the domestic economy -- and especially housing -- needs another jolt from a cut in interest rates. But that rate cut won't happen just yet as the RBA will wait to see how 2013 unfolds.