'Softer than we thought': RBA's admission on inflation

Softer inflation has eased speculation the RBA, led by Michele Bullock, will hike rates in August. (Susie Dodds/AAP PHOTOS)

Surprise inflation data, which came in lower than expected and below the central bank's own forecasts, was due to softer fuel prices, according to the RBA's chief economist.

Figures released on Wednesday revealed headline inflation for June fell from four per cent to 3.8 per cent, the lowest level since the start of the US-Iran war in February.