I flagged this earlier, and it's by far the most important economic event penciled in for Australia this week.

On Wednesday at precisely 11:30am AEST the Australian Bureau of Statistics will release the June quarter Consumer Price Index (CPI).

The typical market forecast is for headline quarterly inflation of 1% and annual at 6.2%, down from 1.4% and 7% respectively in the March quarter.

The critical 'core' trimmed mean figure for inflation, most closely watched by the RBA because it strips out the most volatile price moves, is generally tipped to drop to 1.1% and 6% for the quarter and year, respectively, according to a Refinitiv survey of economists.

Westpac senior economist Justin Smirk released the bank's CPI forecast late last week. It's worth reading because it breaks down each major category and goes into detail about why Westpac is tipping the number it is.

The forecast has also generally been pretty close to the mark quite often.

 Westpac's headline forecast is 1.1% for the quarter and 6.3% for the year to June, which is a touch above the market consensus, but it's core inflation forecast is on the average.

"The Monthly CPI Indicator is turning out to be a very helpful guide to the components of the CPI and we have used the data from the April and May surveys to fine tune our forecasts," Mr Smirk wrote.

"Despite the additional information provided by the Monthly CPI Indicator, there are still many significant unknowns we have to estimate."

Having crunched those numbers, Westpac expects electricity subsidies to push down utility prices by 1.2% over the quarter, with holiday travel costs falling 2%, putting downward pressure on CPI.

Healthcare costs are also expected to fall 1.1% as households hit their spending threshold to received government subsidies, while education is likely to be flat after huge price hikes in the March quarter.

On the flip side, fruit and vegetables (+2.8%), rents (+2.4%) and financial and insurance services (+2.5%) are all tipped to have seen steeper price rises over the three months to June than over the first quarter of the year.

"Overall, the June quarter CPI is set to confirm that inflationary pressures peaked in late 2022 and continue to moderate as we move through 2023," Mr Smirk tipped.

"However, it will also continue to highlight that core inflation remains significantly above the top of the RBA's target band and is not likely to return to being within the band any time soon."

Westpac is currently expecting the RBA to leave rates on hold at 4.1% when it meets next week, but says it will be another finely balanced decision.