Australia's annual rate of inflation eased slightly to 3.5 percent in the 12 months to the end of September, Australian Bureau of Statistics data showed on Wednesday.
The annual rate of inflation was down from 3.6 percent in the year to June.
The data also showed consumer prices rose by 0.6 percent in the September quarter, down from 0.9 percent in the June quarter.
The result was in line with what most economists had been expecting.
The largest price rises in the September quarter were for water and sewerage, up 8.6 percent; electricity, which was up 7.8 percent; property rates and charges, which rose 5.2 percent; and international travel and accommodation, up 5.1 percent.
Although inflation rate figures remains above the Reserve Bank of Australia's (RBA) two to three percent target band, RBA deputy governor Ric Battellino on Tuesday said the central bank would be watching these inflation figures to determine whether to cut interest rates on Nov. 1.
As inflation subsides, there are speculations that RBA will have more room to cut rate in the coming month.
The central bank last raised interest rate in November last year to 4.75 percent.