Australia's inflation rose 0.4 percent in June quarter

Australia's inflation rate rose 0.4 percent in the June quarter of this year, according to the Australian Bureau of Statistics. 

The rise follows a fall of 0.2 percent in the March quarter of this year. 

The most significant rises in the June quarter occurred in medical and hospital services, automotive fuel, and tobacco, the ABS found.

Those rises were partially offset by falls in domestic holiday travel and accommodation, motor vehicles, and telecommunication equipment and services. 

The Consumer Price Index rose 1.0 percent through the year to the June quarter of this year, which is Australia's lowest annual inflation in 17 years. 

The annual rate is well below the central bank's two to three percent inflation target band.

Underlying measures of inflation - which smooth out volatile price swings - were equally benign at an average 0.45 percent in the quarter for 1.5 percent over the year, but were a little stronger than economists had expected and suggest a rate cut is not definite.