A spike in petrol prices has lifted inflation, but not to levels that would prevent a rate cut by the Reserve Bank.
The consumer price index (CPI), the key measure of inflation, lifted 0.7 per cent in the June quarter, official data out Wednesday showed.
That took inflation to 1.5 per cent in the year to June, weaker than economists' expectations of a 1.7 per cent rise, and well below the RBA's two to three per cent target band.
Underlying inflation, which strips out the effects of volatile price movements, rose an average of 0.55 per cent in the June quarter for an annual rate of 2.3 per cent.
"I think basically what this CPI data shows is that inflation remains well contained," St George senior economist Jo Horton said.
"It shouldn't force the RBA's hand either way ... at this stage we're expecting the RBA to leave rates on hold for an extended period."
She said petrol prices were a big factor in the result, rising 12 per cent from the first quarter of 2015.
"That has been a major factor driving overall prices higher," she said.
CommSec economist Savanth Sebastian said it was unlikely petrol would have such a big impact on the next quarterly numbers.
"I think the next result the fuel lift is going to be a lot less given the pressure on the oil price, to some degree that will wind down," Mr Sebastian said.
He also expects the inflation data will not prompt any rate move by the RBA.
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