Last week's official consumer price index figures showed underlying inflation was running at the bottom end of the RBA's 2-3% target band in the December quarter.
CommSec's chief economist Craig James says "It is clear that rising petrol prices will boost the inflation rate in coming months. However, there is not a lot that the Reserve Bank can do about changes at the petrol bowser or the floods in Queensland – a key driver of changes in fruit and vegetable prices."
"If underlying inflationary pressures remain contained, then the Reserve Bank can stay on the sidelines until well into 2011."
ANZ senior economist Amber Rabinov says the RBA will eventually have to act as inflationary pressures build over the medium-term.
"We forecast the RBA to remain on the policy sidelines over the next six months before stronger, big picture developments again begin to dominate the national economy."