Today Australian Bureau of Statistics released inflation number for second quarter which showed that inflation is still undershooting projection and expectation of policy makers.

Consumer price index rose by 0.7% in Second quarter from first and it is up 1.5% from a year ago.

Details of the report showed that,

While price pressure is subdued for food and non-alcoholic beverages at 1.3% y/y, price for tobacco and alcoholic beverages are up by 4.8% on yearly basis. Prices even rose by 1.2% in Second quarter from first.

Cost for medical and hospital services rose by 4.5%.

Most significant price rise was registered in automotive fuel, which rose by 12.2%. Naturally overall transport cost rose by 3.4%

In past one year cost of education has gone up significantly.

Significant price fall were registered in domestic holiday travel (-5.4%) and pharmaceutical products (-1.8%).

With mixed picture in price rise RBA is likely to wait another quarter report, before considering further move.

RBA's preferred inflation indicator (trimmed mean) measured price rise of 0.6% in June quarter from March and 2.2% from a year ago.

Aussie is currently trading at 0.741 against dollar.