The annual rate of inflation remains well below the Reserve Bank's target range, leaving room for another interest rate cut.
Consumer prices were up 0.3 per cent in May, equalling April's rise, according to the TD Securities/Melbourne Institute monthly inflation gauge.
The annual rate of inflation has stayed at 1.4 per cent for the second month in a row, and has now been below two per cent for six months.
The RBA's target range is inflation of two to three per cent.
TD head of Asia Pacific research Annette Beacher said the low rate of inflation means there is no impediment for the RBA to cut the cash rate further, if needed.
But no cut is expected when the bank meets on Tuesday.
"We expect this tone and explicit easing bias to be voiced at tomorrow's RBA board meeting, along with leaving the cash rate at two per cent," she said.
Higher prices for fuel, tobacco and rental accommodation in May were offset by falls in holiday travel and accommodation, books and stationery, as well as non-alcoholic beverages.
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