Further indications of an economy sailing along at a healthy pace combined with worryingly low inflation will give the Reserve Bank board plenty to discuss at its board meeting on Tuesday, but are unlikely to result in any immediate action.

The Melbourne Institute monthly inflation gauge on Monday showed prices falling by 0.2 per cent in May, the second inflation measure to register deflation. In the 12 months to May, the inflation gauge increased by just 1.0 per cent, falling steeply from a rise of 1.5 per cent in April.