The Reserve Bank of Australia has warned of a prolonged and “bumpy” campaign to reduce inflation, as the bank grapples with strong domestic price pressures in services and petrol price shocks.

In the central bank’s first public speech since increasing the cash rate 0.25 of a percentage point to 4.35 per cent last week, the RBA’s acting chief economist, Marion Kohler, said that the “next stage in bringing inflation back to target is likely to be more drawn out than the first”.