Australia's inflation rose in June from a month earlier, lifted by higher prices for fruit, vegetables, motoring and insurance services, but reached a record low on an annual basis, according to a closely watched inflation indicator.
Policy makers will likely not be too unsettled by June's price fillip, as they already expect price pressures to broadly continue a downward trend in coming months as economic growth remains muted.
The TD Securities-Melbourne Institute inflation gauge rose 0.4% in June from May, when it fell 0.3%, to an annual rate of 1.4%, putting the gauge below the Reserve Bank of Australia's 2%-3% inflation target band for the second consecutive month.