SYDNEY, Aug 16 (Reuters) - The annual pace of Australian inflation rose even faster than first reported over the June quarter according to a new monthly measure of consumer prices, underlining the need for yet more increases in interest rates.

An information paper from the Australian Bureau of Statistics out on Tuesday showed its monthly consumer price index (CPI) rose 6.8% in June, compared to a year earlier, higher than the 6.1% reported for the entire June quarter.

The annual pace picked up from 5.5% in April to 6.2% in May and then 6.8% in June, showing no sign of slowing down.

The ABS had already reported the CPI for the June quarter but is set to issue a partial monthly measure from October onwards, responding to widespread calls for more timely updates.

The Reserve Bank of Australia (RBA) has been badly wrong footed by the surge in inflation this year, having to change tack and rapidly raise interest rates in response.

Rates have climbed 175 basis points since May to reach 1.85% and further hikes are expected in coming months.

The new monthly measure of CPI showed rises of 0.3% in April, from the prior month, and 0.7% increases in both May and June.

The ABS cautioned that not all the items in the CPI basket would be updated each month and the series would be subject to revision as it was not yet adjusted for seasonal effects.

"The frequency of price collection and the methods used to compile the two indexes will lead to differences between the monthly CPI indicator and the quarterly CPI," the ABS said.

The new monthly CPI will have up-to-date prices for between 62% and 73% of the weight of the CPI basket, depending on the month in the quarterly cycle.

The monthly CPI indicator will be released around four weeks after the end of the reference month, with the exception of the November data which will occur in January rather than December.

The ABS said it will also aim to produce monthly measures for core inflation - the trimmed mean and weighted median - favoured by the RBA once it finalised a seasonally adjusted process. (Reporting by Wayne Cole Editing by Shri Navaratnam)