A large unexpected fall in domestic air travel prices contributed to a 0.1% fall in the ANZ monthly inflation gauge last month.
While housing-related price pressures were "trucking along'', they were not strong enough to offset the large fall in travel prices, ANZ senior economist Liz Kendall said.
Domestic prices fell 18% in the month, giving a very weak signal at a time that would usually be the peak of the calendar year, Ms Kendall said.
The gauge was up 2.3% year-on-year in December. Housing-related prices provided most of the lift and rents were the largest single contributor.
Accommodation was the second-largest contributor, up 4.9% for the month, and stuck to the seasonal script, giving a December quarter read of 6.5%.
