Inflation remains subdued - though petrol prices and health costs nudge inflation higher

Surging oil prices and ongoing cost increases in medical and hospital services has seen the annual inflation rate edge up to 2.1 per cent over the year. 

But June quarter inflation remains soft at the bottom of the Reserve Bank's 2 to 3 percent target band. 

ABC's Peter Ryan says the RBA's cash rate could remain in hold at 1.5 percent until 2020.