Reserve Bank Governor Michele Bullock has cautioned that a potential oil price shock stemming from the conflict in Iran could exacerbate local inflationary pressures, as new research identifies inflation as the primary economic concern for Australians.
Addressing the Australian Financial Review Business Summit on March 3, Bullock noted that recent hostilities between Iran and the United States serve as a volatile reminder of how quickly global conditions can shift.
"It's too early to say what the impact will be; events are moving rapidly and there are different ways this can play out," Bullock stated, adding that while a supply shock could hike prices, a global slowdown might eventually depress them.
"It is not obvious how this might play out," she remarked.
