SYDNEY, Aug 31 (Reuters) - A private-sector gauge of Australian inflation showed price pressures remained well contained in August and were no bar to another cut in interest rates if needed.
The TD Securities-Melbourne Institute's monthly measure of consumer prices rose 0.1 percent in August from July, when it edged up 0.2 percent. The annual pace ticked up to 1.7 percent, from 1.6 percent but was still under the Reserve Bank of Australia's (RBA) target band of 2 to 3 percent.
The central bank holds a policy meeting on Tuesday and is considered almost certain to keep rates steady, having already cut the cash rate to an all-time low of 2.0 percent in May.
"We expect the RBA Board tomorrow to keep a cool head, looking through the extraordinary volatility of recent weeks. The Board is expected to leave the cash rate at 2 percent and welcome the decline in the exchange rate, as was the case last month," said Annette Beacher, chief Asia-Pacific macro strategist at TD Securities.
Monday's TD-MI survey showed the trimmed mean of the CPI was flat in the month, leaving the annual rate at 1.5 percent, down from 2.3 percent at the start of this year.
Inflation excluding fuel, fruit and vegetables was a subdued 0.2 percent, with the annual pace equally restrained at 2.0 percent.
Non-tradables inflation, covering the prices of goods and services not determined by international competition, slowed to 1.9 percent from 2.0 percent. Tradables inflation picked up to 1.4 percent on the falling Australian dollar.
For August alone, there were price rises for international holiday travel and accommodation, newspapers, books and stationery and alcoholic beverages.
These rises were offset by falls in petrol prices, domestic holiday travel and accommodation and fruit and vegetables.