Australia's headline Consumer Price Index rose 0.6 per cent in the June quarter according to figures released by the Australian Bureau of Statistics on Wednesday.
That contributed to an overall annual inflation rate of 3.1 per cent.
That's less than economists were expecting - a survey of 11 economists by AAP reflected a factored average rise of one per cent.
The news prompted the Australian dollar to shed half a cent in value. The Australian dollar fell to 89.53 US cents by 1141 AEST from 90.09 cents just before the report was released at 1130 AEST.