Inflation won't stand in way of possible interest rate cut

It is becoming increasingly possible that Treasurer Joe Hockey will get a helping hand to soothe voters heading into his May 12 budget.

Reserve Bank governor Glenn Stevens has indicated that another interest cut is on the table for discussion when the central bank board meets a week out from the budget.

Wednesday's official inflation figures won't stand in the way of a cut in the cash rate to a new all-time low of two per cent from 2.25 per cent, where it has stood since February.

Economists expect the consumer price index will ease to an annual rate of just 1.3 per cent, the slowest inflation rate in nearly three years and comfortably below the RBA's two to three per cent target band.