For mortgage holders concerned about another rate hike, this might mean a reprieve, although this remains uncertain.
Many economists, including from Commonwealth Bank and NAB, believed a quarterly increase of 1.1% or higher likely would have been enough to force the RBA's hand.
CommBank economist Stephen Wu said 0.9% or lower would likely mean a hold, but called 1.0% a 'grey zone' between the two.
A few spending categories saw significant price increases through the quarter, including housing (up 1.1%), food and non alcoholic beverages (up 1.2%), clothing and footwear (up 3.1%) and alcohol and tobacco (up 1.5%).
Over the 12 months to the June quarter, prices rose 3.8%, up from 3.6% in March.
This is exactly in line with the RBA's most recent forecasts - in the most recent Statement on Monetary Policy, it was assumed headline annual inflation would be 3.8% in June '24, and would remain there at least until December before moderating.
However, underlying inflation, which excludes fuel and food prices which tend to be more volatile, was also expected to be at 3.8%, but came in at 3.9%.
Given the unemployment rate for June (4%) was also bang on RBA forecasts, struggling mortgage holders will be hoping there is enough evidence that inflation is still moderating to avoid another rate hike next week.
The ASX gained about 0.6% in the aftermath of the release, which might suggest investors now think an August hike is less likely.
An uneven fight against inflation?
In theory, rate hikes are supposed to broadly curb demand across the nation.
Most people are tenants or mortgage holders after all, so the theory is that as the cost of rent or home loan repayments increases, everyone cuts back on spending a little bit and inflation comes down.
However, findings from the Infochoice State of Aussies' Savings report suggests it's only a fraction of the Australian population doing the heavy lifting.
Only 43.4% of respondents reported substantially cutting back on spending over the past 12 months.
However this could be because unit prices are rising on core items.
These front line fighters however are making big sacrifices, on things like insurance (22.7%), health and fitness (27%) and utilities (18.8%).
More than half of those who reported cutting costs (50.1%) have been spending less on groceries.
It's a reminder why monetary policy is often called a 'blunt tool' - those with the means to absorb rate hikes might not need to forgo things, as inflation is forced down by squeezing those doing it tougher.
The report also found nearly a third (32.2%) of Aussies now have less than $5,000 in savings, while nearly one in six respondents have less than $1,000.
