Australia's official rate of inflation fell to 3.1 percent for the year to December and to zero for the December quarter. It is the first time Australia has recorded no inflation in a quarter since December 2008.

Offsetting increases in the prices of telecommunications, rent and domestic holidays were big falls in prescription drugs and fruit, led by a 46 percent drop in the price of bananas at the end of the year. Over the year, however, fruit prices climbed 24.4 percent.