The rising cost of oil and iPhones is concerning the Reserve Bank of Australia as it approaches a crucial interest rate decision, the central bank's chief economist says.

With rising inflation pressures from the Middle East and more broadly around the globe, the Reserve Bank faced a 'challenging' situation, its chief economist Sarah Hunter told a Regional Australia Institute summit in Canberra.

Dr Hunter said inflation risks were skewed to the upside as higher petrol and diesel costs were set to flow through to households and businesses.

But the Reserve Bank was also concerned the broader global environment was more inflationary.

The scramble for tech components as a result of the AI boom was one example.

'Anyone who's bought a new iPhone recently might have noticed that the price went up quite a bit,' Dr Hunter said on Monday.

'That's actually true for consumer electronics more generally, and that's directly related to the AI boom; those chips that are in all of our electronic products are in high demand right now.

'The price is going up as a result.'

At a starting price of $3499, Apple's latest effort - the iPhone Duo - is commanding a significant mark-up to previous models at launch.

The escalating conflict in the Middle East was also 'concerning', with energy cost pressures pushing up inflation in Australia's economy, Dr Hunter said.

Oil prices broke the psychologically significant $US100 a barrel barrier last week as Iranian attacks on tankers passing through the Strait of Hormuz ramped up.

Saudi Arabia has shut its east-west pipeline following a drone attack, shutting a key Hormuz bypass, with the oil-rich nation's crude production tumbling by 1.9 million barrels a day in August to the lowest level since the conflict began, economists at ANZ bank said.

The increased attacks have already impacted exports of crude oil and refined fuel products from the Persian Gulf, but further pressure on prices was likely to come from the advance of Iran's Houthi allies in Yemen.

'Riyadh has now lost the option to use western exports if the Strait of Hormuz deteriorates again,' ANZ analysts said on Monday.

'This is likely to put further upward pressure on oil prices this week.'

The federal government has not ruled out cutting the fuel excise again as petrol and diesel prices rise.

Reserve Bank governor Michele Bullock has previously said the board might have to raise interest rates further if upside risks to inflation materialised.

Money markets are pricing the chance for another rate rise at the Reserve Bank's September 28-29 board meeting at about three in four.

But with traders fully pricing in at least two rate hikes by mid-2027, it is more a matter of when, rather than if.