The whole-year CPI growth is expected to be lower than DGBAS' forecast of 0.68 percent, the bank said in the report.
The central bank is expected to meet on Thursday.
Cheng said he expected the central bank to pause its consecutive rate hikes this week as inflationary pressure eases.
The bank has ratcheted up its benchmark interest rate for nine straight quarters since October 2004 to 2.625 percent.
Lehman Brothers in a report released last week also predicted that the central bank was likely to keep rates on hold given "weak domestic demand and the risk of a sharp downturn in exports."
As CPI inflation is close to zero, this implies the real interest rate should be approaching its neutral level and likely allows the central bank to maintain its monetary policy, the research house's chief economist Rob Subbaraman wrote in the report.
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