The Australian Bureau of Statistics has served up some humble pie to the monetary policy galahs in the pages of the Financial Review who have been demanding an interest rate rise: Australia's inflation rate in the June quarter was flat.

In seasonally adjusted terms, the consumer price index rose an unchanged 0.4% from the March quarter, for an annual rise of 2.1% in the 12 months to June. The market forecast was for a quarterly rise of 0.5% forecast and a year on year rate of 2.2%. Higher petrol prices, higher tobacco, health and alcohol costs and a small rise in overseas travel were the main drivers in the rise, offset by weaker telecommunications costs, lower fruit prices, soft drinks, food prices and domestic travel.