Reserve Bank Governor Michele Bullock says the central bank’s inflation forecast will be driven by petrol prices.

Ms Bullock addressed a media conference on Tuesday.

She explained the RBA’s decision to hold the cash rate at 4.35 per cent and what drives their inflation forecast.

“The inflation forecast in the next little while is going to be quite driven by petrol prices which can go up and down obviously,” she said.

“So, it is going to be a little bit elevated in the near term, in the next six months, and then we think it is going to come down.”

Extracted in full from: