Australian consumer prices rose in December 2012, largely due to the rising cost of fuel, rent and holiday travel and accommodation, according to the TD Securities- Melbourne Institute on Monday.

The monthly inflation gauge by the investment banking arm of Toronto Dominion (TD) Bank and the research unit of Melbourne University rose 0.4 percent in December, following a fall of 0.1 percent in November.

In the year to December, the gauge rose 2.4 percent, in line with the Reserve Bank of Australia (RBA)'s target band of between two and three percent on average over time.

The TD Securities said price rises for petrol, holiday travel and accommodation and rent contributed to the overall change in December.

However, they were offset by falls in the cost of clothing, footwear, alcohol, tobacco, meat and seafood in the month.

Head of Asia-Pacific Research at TD Securities Annette Beacher said the figures suggested the RBA would leave the cash rate at " the already record low of three percent" through out February and March.