The annual rate of inflation has slumped but is staying within the Reserve Bank's two to three per cent target.
Consumer prices were down 0.2 per cent in February, reversing January's 0.4 rise, according to the Melbourne Institute monthly inflation gauge.
In the 12 months to February, the inflation gauge rose 2.1 per cent, following a 2.3 per cent annual rate in January.
The result was dragged down by falls in petrol prices and holiday travel and accommodation.
These were partially offset by gains in housing, furnishings and household equipment.
"(Fuel prices) fell by 5.6 per cent this month, following a 4.8 per cent fall last month," Melbourne Institute Senior Research Fellow Dr Sam Tsiaplias said.
"February's fall reflects pass-through effects stemming from oil price volatility. Excluding volatile items, inflation was actually fairly flat."
