Due to the instability of the characteristics of materials, fabrication processes and user handling, newly designed and fabricated wireless passive surface acoustic wave (WP-SAW) sensor nodes have inconsistent sensing performance. Furthermore, ambient environmental interferences aggravate inconsistences under complex working conditions. In this paper, a multi-iteration enhanced two-point simple moving average (MI-2P-SMA) method is proposed for sensing error reduction of a WP-SAW reflective delay line water temperature and pressure sensor. This method is improved from the traditional 2P-SMA method for better performance on error reduction. The results show: the MI-2P-SMA method does not change the original characteristics of experimental data; it can reduce relative errors of the WP-SAW reflective delay line water temperature and pressure sensor and has better performance than a traditional 2P-SMA method; it reduces the number of data points and the extent of this reduction is dependent on iteration time.