RBA Governor Warns of Inflation Risks from Middle East Conflict and AI Boom

RBA Governor Michele Bullock says Australia's inflation concerns are materializing, which could lead to another interest rate hike.

The Reserve Bank's fears about inflation have come true, with inflation being too high and the key question now is whether the bank's three rate rises to date are enough to bring inflation back to target in a reasonable time.

Bullock said during a parliamentary hearing that the Middle East conflict, AI boom, and extreme weather events have added pressure on energy, food, and tech prices.

The benchmark Brent crude price has remained above $US104 a barrel, with oil and related prices increasing sharply again and adding directly to inflation.