(Image: Mitchell Squire/Private Media)
(Image: Mitchell Squire/Private Media)

The Consumer Price Index (CPI) rose 1.8% in the June quarter, slightly under market forecasts, but still lifting annual inflation to 6.1%. The June result was the second highest since the introduction of the GST, but lower than the March result of 2.1%.

Underlying measures, which the Reserve Bank watches closely, also rose: the trimmed mean reached 4.9%, while the weighted median reached 4.2%.

The slightly lower result will complicate the RBA's thinking on its next rate rise at Tuesday's board meeting, and will raise the possibility that a 0.25% increase is required rather than another 0.5% slug. Inflation here has a six in front of it compared to an eight or nine in the US and the UK, and may have peaked, though energy costs such as higher electricity and gas prices are yet to feed through into household bills -- that is happening in the current quarter -- and continuing bad weather will keep food prices higher. Food prices were a contributor to the result -- rising 2% in the June quarter -- but the big contributors were housing costs (5.6%) and petrol (4.2%).