Consumer prices are still drifting up but not as quickly, with inflation lifting six per cent annually.
Inflation as measured by the Australian Bureau of Statistics moderated from the seven per cent growth through to March.
The consumer price index lifted 0.8 per cent over the June quarter, down from 1.4 per cent in the three months to March.
ABS head of prices statistics Michelle Marquardt said this was the lowest quarterly rise since September 2021.
"While prices continued to rise for most goods and services, there were some offsetting price falls this quarter including for domestic holiday travel and accommodation and automotive fuel," Ms Marquardt said.
The biggest contributors to the rise in the June quarter were rents, which recorded the strongest quarterly rise since 1988, as well as international holiday travel and accommodation, other financial services, and new dwellings purchased by owner occupiers.
The trimmed mean, which crops away large price changes at either end of the price change spectrum, also weakened to 5.9 per cent annually in the June quarter from 6.6 per cent in March.
Economists surveyed expected to see inflation tracking down from its peak late last year to hit 6.2 per cent in the June quarter.
For the trimmed mean inflation, a moderation to six per cent was pencilled in.
While the Reserve Bank will welcome the slowing pace of inflation, prices are still growing much faster than its two-three per cent target range.
The central bank has been lifting rates since May last year to chase down fast-rising inflation and ensure it's a temporary surge that doesn't linger.
The monthly inflation gauge, which was released at the same time, rose 5.4 per cent in the 12 months to June.
© AAP 2023