The TD-Securities/Melbourne institute inflation gauge was unchanged at 0.9 per cent for the second straight month, matching its August result.
The gauge rose by 1.3 per cent year in the year to September, the fifth consecutive month it has been below the RBA's two to three per cent target range and the lowest year-on-year result in the seven year history of the survey.
TD-Securities senior strategist Annette Beacher said the result dampenedd any "urgent" need for the central bank to raise the cash interest rate above its current level of three per cent.
"Financial markets continue to race ahead to price in around two 25 basis point interest rate increases by Christmas," she said in a statement on Friday.
"However, contemporaneous data on the economy remains mixed, and overall price pressures are moderating, clearing obviating the need for immediate lifting of Australia's 3 per cent cash rate."
The central bank has kept the cash rate at a 49 year low since April after a series of cuts that began in September last year.
Ms Beacher said inflation had been moderated by a firm Australian dollar.
The local currency hit a 13 and a half month high of 88.47 US cents during Wednesday's offshore session, its highest it touched 89.52 cents on August 11 last year.
"The ongoing strength in the Australian dollar has considerably dampened the price of imported goods, with tradable inflation down 0.3 per cent for the month, to be 1.8 per cent lower than year ago levels," Ms Beacher said.
"This is clear evidence that the ongoing firm dollar is materially moderating overall inflation pressures."
The inflation gauge showed that of the 90 expenditure groups surveyed, prices rose in 25 and fell in 16 and 49 were unchanged.
Co-creator of the inflation gauge, Professor Don Harding from La Trobe University, said the result indicated inflation would continue to remain low and not burden monetary policy.
"The inflation gauge for September coming on the back of the low August reading provides evidence that the inflation spectre is unlikely to return in the short run," he said.
"Provided the accommodating monetary policy and unusually strong fiscal stimulus are unwound in a timely fashion there is room for increased confidence that the inflation spectre wont return in the medium term."
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