Economists say the latest reading on business inflation shows the high Australian dollar is keeping prices low.
Official figures show the producer price index, which measures the prices businesses pay for goods, rose by 0.2 per cent in the December quarter, which was about half the rate expected by economists surveyed by Reuters.
The Bureau of Statistics data show domestic prices rose by more than 1 per cent in the period, but this was offset by a 1.7 per cent fall in import prices.
St George economist Janu Chan believes the Reserve Bank will leave the official interest rate unchanged at 3 per cent when it meets next week, despite the tame level of inflation.
"It is suggesting that price pressures remain very well contained and is showing that inflation is really not a risk to the outlook at the moment," she said.