A leading unofficial measure of inflation shows price pressures are being contained, paving the way for official interest rates to remain low.
Last month, price rises for fruit and vegetables, petrol and tobacco were offset by falls in the cost of clothing, footwear and holiday travel and accommodation.
As a result, the inflation gauge by TD Securities and the Melbourne Institute recorded no growth in February.
On an annual basis, inflation stands at 2.4 per cent, which is well within the Reserve Bank's target range.
The head of Asia-Pacific research at TD Securities, Annette Beacher, says benign inflation means interest rates should remain low.
"We are seeing an exceptionally low number for February, and in fact if we trim out food and fuel, which is what a lot of the other nations do when looking at core inflation, it actually went backwards by 0.04 per cent," she said.
"So we're really not seeing any broad-based inflation so far in the early months of 2013.
"There's lots of other variables for the board to discuss, such as the global outlook and secondly we found out last week that there's some very encouraging signs in non-mining investment for next year.
"So I think there's lots of things to chew on but certainly one thing the RBA doesn't need to worry about is the near-term inflation outlook."