The annual rate of inflation is staying well below the Reserve Bank's two to three per cent target, but the bank is unlikely to take the option of cutting the cash rate.
Consumer prices were up 0.1 per cent in August, following a 0.2 rise in July, according to the TD Securities/Melbourne Institute monthly inflation gauge.
The annual rate of inflation was 1.7 per cent in August, and has stayed below two per cent all year.
Price rises for international accommodation and travel, and alcoholic beverage, were more than offset by falls in the price of fuel, domestic travel and fruit and vegetables.
TD head of Asia Pacific research Annette Beacher expects the RBA to keep its cash rate unchanged for quite a while, despite inflation staying well below the RBA's target band.
"Australian financial markets have been beaten up in recent weeks, the unexpected regime changes in China playing a significant role," she said.
"In contrast, we expect the RBA Board tomorrow to keep a cool head, looking
through the extraordinary volatility of recent weeks."
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