inflation vs deflation - again

This topic sure gets flogged on this forum, I reckon its time for another round. While we collectively bang on about the theory, what is actually happening? Lets look at RBA's figures, released today.
Quarter on quarter CPI increase: 1.2%
Annual CPI increase: 4.4%

4.4%!! Are you friggin kidding me? Despite the falling energy prices, house prices, etc?

Sorry deflationists, but no way do I believe we've got deflation. Sure, in houses, luxury cars, boats and overseas holidays we do. But in the stuff that really counts? No way.

Ref: http://www.theaustralian.news.com.au/business/story/0,28124,25369446-643,00.html