for whatever it's worth, the RBA also seems to see inflation as...

for whatever it's worth, the RBA also seems to see inflation as decreasing in '09 although not as savagely as might be expected in a pure deflationary scenario:

"But while the RBA also sees consumer price inflation (CPI) and underlying inflation falling in 2009, the timetable for the expected decline has been pushed out to December 2010 when both measures are expected to reach 3 per cent, six months later than expected.

Annualised underlying inflation is now seen at 4.5 per cent to December 2008, 4 per cent to June 2009 and 3.5 per cent to December 2009.

That compares to an earlier forecast for 4.5 per cent, 3.75 per cent and 3.25 per cent, respectively.

"These central forecasts reflect a judgment as to the net effect of a number of powerful influences, some contractionary and some stimulatory, on the Australian economy," the RBA said."

http://www.news.com.au/business/money/story/0,25479,24628258-5016110,00.html