Inflation figures show a 0.4 per cent increase in the consumer price index in the December quarter.
Economists' forecasts for the headline consumer price index (CPI) had centred on a rise of 0.7 per cent in the quarter, for an annual pace of 3.0 per cent.
The inflation rate in the September quarter was 0.7 per cent, for an annual rate of 2.8 per cent, AAP reported.
The trimmed mean CPI rose 0.3 per cent in the December quarter, for an annual growth rate of 2.2 per cent, Australian Bureau of Statistics (ABS) data showed.
Over the year, there was a two per cent rise.
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Food was the most significant climber, up 2.2 per cent in the quarter. Fruit was up 15.5 per cent over the year, while vegetables were up 11.4 per cent.
The biggest decreases were with pharmaceuticals, down 6.2 per cent, and audio, visual and computing equipment, down 4.8 per cent.
The figures are based on the weighted average of eight capital cities.
