The Australian dollar has hit a four month low after the release of weaker than expected US inflation figures.

At 0630 AEDT on Wednesday, the local unit was trading at 89.00 US cents, down from 89.51 cents on Tuesday.

In the early hours of Wednesday morning, it fell as low as 88.82 US cents, its weakest level since August 5.

The US consumer price index was flat in November and was up 1.2 per cent in the 12 months to November.

AAP