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No, buying app need password, both free and paid. Updating apps don't need password, also both free and paid.
 
I think I remember that as well. Cult of Mac backs it up with this story.

New In iOS 6: App Store Doesn’t Require A Password To Download Free Apps

I'm not sure what happened since then. But I found a random free app in the App Store and tried to download it and I was prompted for my password just now.

EDIT: Looks like the free download without prompt apps only apply to Apple created apps. I tapped "Find My Friends" and it installed without prompt. This article from Mac Daily News backs that up.

iOS 6 App Store to deliver one-tap installation of free Apple apps
 
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