The increase in the Australian consumer price index (CPI) remained unchanged in October as lower transport costs offset rises in other household expenses, according to data from the Australian Bureau of Statistics (ABS).
The ABS said the measure of inflation rose 2.1% in the 12 months to October, the same as the change in the year ended September, but below market expectations of 2.3%.
It said increases in food and non-alcoholic beverage (3.3%), recreation and culture (4.3%), and alcohol and tobacco (6.0%) costs were partly offset by a 2.8% fall in transport costs over this period.
The annual movement in the monthly CPI indicator excluding automotive fuel, fruit and vegetables and holiday travel and accommodation was 2.4% in October, down from 2.7% in September, the ABS said in a media release.
However, an alternative measure of underlying inflation, annual trimmed inflation, rose to 3.5% in October from 3.2% a month earlier.
This measure reduces the impact of irregular or temporary price changes by excluding significant falls in automotive fuel and electricity, and other large price rises and falls.
Inflation is being closely watched not only in Australia but around the world as markets consider the likely response from central banks as they set official interest rates.