Inflation remains relatively subdued, but a further interest rate cut by the central bank isn't a done deal.
The consumer price index (CPI) reading for the June quarter of this year was a little below economists' expectations, Australian Bureau of Statistics (ABS) figures show.
But underlying inflation - which smooths out volatile price swings - was slightly above forecasts.
This implies the Reserve Bank of Australia (RBA) might be less inclined to cut rates, even though both inflation measures are within its two to three per cent target.
The CPI rose 0.4 per cent in the quarter, compared to a forecast 0.5 per cent, for an annual rate of 2.4 per cent.
The average of the underlying measures of inflation - the RBA's preferred measure of price pressures - was 0.6 per cent, compared to a forecast of 0.5 per cent, and 2.4 per cent over the year.
The ABS said the most significant price rises during the quarter were for medical and hospital services (up 3.4 per cent), tobacco (up three per cent), new dwelling purchase by owner-occupiers (up 0.9 per cent), furniture (up 4.8 per cent) and rents (up 1.1 per cent).
The most significant price falls were for domestic holiday travel and accommodation (down four per cent) and automotive fuel (down 3.1 per cent).
The RBA holds its next board meeting to discuss interest rates on August 6.
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