The inflation rate has decreased to its slowest pace in a year as a result of falling electricity and petrol prices.

The annual rate of inflation has slowed to 2.3 per cent, helped by a drop in electricity prices and the cost of petrol.

The consumer price index released on Wednesday now stands at its lowest level in a year after touching the top of the central bank’s 2-3 per cent target band three months earlier.

It was the first official reading of inflation since the Abbott government scraped the carbon tax.

During the September quarter, the CPI rose by 0.5 per cent, slightly higher than economists had expected.

The Australian Bureau of Statistics said the most significant price falls during the quarter were for electricity (down 5.1 per cent) and automotive fuel (down 2.5 per cent).

However, fruit prices jumped by 14.7 per cent.

The inflation results provide the Reserve Bank with further scope to keep interest rates steady.

Underlying measures of inflation, which smooth out volatile swings in prices, also rose by 0.5 per cent in the quarter to be 2.55 per cent higher on the year.