Both the headline and underlying rates have remained well in between the Reserve Bank's comfort range of two to three per cent.
In this quarter, rising utility prices have been offset by a fall in food and fuel costs.
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But while traders have now only priced in a 17 per cent chance of rate rise, down from 50 per cent before the CPI numbers were released, not everyone is convinced the Reserve will sit on its hands next Tuesday.
Helen Kevans, an economist at JP Morgan, says capacity constraints will lead to inflation down the track, and that in turn will lead to higher interest rates.
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