The annual rate of inflation remains below the Reserve Bank's target range after another soft month of price growth in October.
Consumer prices were flat in October, following a rise of 0.3 per cent in September, delivering an annual rate of inflation of 1.8 per cent, according to the TD Securities/Melbourne Institute monthly inflation gauge.
Price rises for tobacco, utilities and newspapers, books and stationery were offset by falls for fruit and vegetables, holiday travel and accommodation and bread and cereals.
TD head of Asia Pacific research Annette Beacher said benign inflation leaves room for a Reserve Bank rate cut, though she does not expect a move on Tuesday.
"The outcome of tomorrow's RBA board meeting may disappoint some," she said.
"We see the RBA as reluctant cutters, questioning the firepower of even lower borrowing rates."
A rate cut may come in coming months if other sectors of the economy deteriorate, Ms Beacher said.
