Latest inflation levels appear to be within the mark set by central bank authorities for the current year, according to the January edition of the TD Securities-Melbourne Institute measure of consumer prices.

Reuters reported on Monday that the soaring Australian dollar, which achieved record high on Friday's closing, further kicked up consumer prices last month by 0.2 percent, which followed the 0.5 percent gain in December.

Also, the joint survey showed that costs of tradable goods have been declining over the past five months, plunging again by 0.4 percent in January that cancelled out the 0.6 percent rise in non-tradable prices in the same month.

According to the TD Securities-Melbourne Institute gauge, balancing movements of living costs, which include goods and services, paved the way for the yearly inflation pace to slowdown at 2.2 percent, which was previously pegged at 2.4 percent.

Despite the government's reports of consumer price index surging at an annual level of 3.1 percent by the end of 2011, economists expect the numbers to head downward as seasonal adjustment do away with weather-induced increases.

The private measure of underlying inflation showed the indicator rising by 0.3 percent in January, leading to an annual movement of 2.2 percent while that of the government was steadying at 2.6 percent in the last three months of the past year.

However, the two separate figures still fall within the two to three percent target earlier set by the Reserve Bank of Australia (RBA) for 2012, economists noted.

Price spikes in utilities, education, transport and petrol were balanced out by price hikes seen in travel, accommodation, furniture, furnishings, fruits and vegetables, Reuters wrote.

With inflation expected to play out within the manageable levels this year, analysts said that another rate cut coming from the RBA would not be too remote on Tuesday, capping the cash rate at 4.0 percent for February.

The RBA imposed back-to-back rate reduction last year that saw the country's benchmark rate settling at 4.25 percent in December.

And another push back ought to be a clear case for the RBA board this month, according to TD Securities analyst Annette Beacher.

Beacher said that aside from the easing inflation concerns, the high Australian dollar could prompt the RBA to simply implement what has been long projected by many economists since late last year.

"There is clearly ample justification for the RBA board to take the next step and shift monetary policy into a more accommodative stance tomorrow by lowering the cash rate to 4 per cent," Beacher told Reuters.