Prerequisites. You need to have ssh server running on the host (ssh localhost should let you in).
Then if you want to use password authentication (do note the trailing comma):
$ ansible-playbook playbook.yml -i localhost, -k
In this case you also need sshpass.
In case of public key authentication:
$ ansible-playbook playbook.yml -i localhost,
And the test playbook, to get you started:
- hosts: all
tasks:
- debug: msg=test
You need to have a comma in the localhost, option argument, because otherwise it would be treated as a path to an inventory. The inventory plugin responsible for parsing the value can be found here.