KEVIN Rudd returns to work in Canberra today after a two-week holiday, with plans to tackle inflation his first priority.

The Prime Minister was criticised for taking a break while the country faced a crisis over interest rate rises and rising fuel costs.

Deputy Prime Minister Julia Gillard and Treasurer Wayne Swan had been left to respond to concerns, but from today the buck will stop with Mr Rudd.

His office said he would return to work in Canberra today and would not attend a meeting of treasurers and health ministers in Brisbane, where he met Mr Swan and Treasury secretary Ken Henry yesterday.

Instead he would attend to issues from his Canberra office.

The spokeswoman said he would travel to the country later in the week.

"The Prime Minister will hit the ground running in 2008. He will continue working on the inflation challenge that the Howard government left behind," the spokeswoman said.

"He is placing priority on implementing policies that place downward pressure on inflation.

"The PM understands the pressure that rising inflation places on working families."

Ms Gillard will return to her role as Deputy Prime Minister after a historic two weeks as Acting Prime Minister, the first time a woman has held the job for such a long period of time.

Ms Gillard has put in almost two-thirds as many days in the jobas Mr Rudd, despite her boss's much-publicised directive to his party to forget about summer holidays.

The Prime Minister, who won the job on November 24, has vacated the post at least twice since being sworn in in early December. He is now at home at The Lodge, after hosting a New Year Eve bash for colleagues and supporters at Sydney's Kirribilli House.

Mr Rudd reportedly spent the second last evening of his holiday hosting a dinner for Nicole Kidman, Keith Urban, Hugh Jackman and Deborra-lee Furness.

Arts and Environment Minister Peter Garrett and his wife, Doris, joined the celebrities, and the Rudd family, at Kirribilli House.

Sydney newspapers reported that country singer Urban and the pregnant Kidman arrived without an escort of paparazzi.

Reports said the guests arrived at dusk with Jackman wearing a lounge suit. Urban and Mr Garrett arrived jacketless.

The dinner was the second time Jackman and Mr Rudd had met over the Christmas period.

They were invited by Cricket Australia to share a box in the Brewongle Stand at the SCG during the second Test between Australia and India.

News.com.au