Treasurer Wayne Swan says the latest inflation figures are encouraging but show Australians are still doing it tough.
"It's very encouraging to see the trend with underlying inflation," he said in Sydney.
"And as you know, this is the measure the Reserve Bank pays particular attention to."
The inflation figures from the Australian Bureau of Statistics were weaker than expected, reducing expectations of an interest rate next week by the Reserve Bank of Australia (RBA).
"Today's figures, while lower than expected, still show that there's financial pressure facing Australian families and businesses," Mr Swan said.
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The consumer price index (CPI) for the June quarter rose 0.6 per cent, for an annual rate of 3.1 per cent.
Underlying, or core, inflation rose by 0.5 per cent in the quarter for an annual rate of 2.7 per cent, which was within the RBA's target band of two to three per cent.
