The Australian Consumer Price Index (CPI) rose 0.5 percent in the June quarter, following a rise of 0. 1 percent in the March quarter, the Australian Bureau of Statistics (ABS) reported on Wednesday.
Over the year to the June quarter, the CPI rose 1.2 percent, compared with a rise of 1.6 percent over the year to the March quarter, the ABS said.
That is the lowest annual inflation rate in 13 years.
The CPI is expected to rise by 0.6 percent in the June quarter, for an annual rate of 1.3 percent, according to an Australian Associated Press (AAP) survey of 16 economists.
Economists say the inflation figure for the June quarter suggests a cash rate cut from the Reserve Bank of Australia is possible but may not happen at its August board meeting.