Reserve Bank of Australia governor Michele Bullock has warned the massive price rises of recent years that have forced millions of Australians to tighten their budgets will not reverse.

The stark warning comes after inflation soared more than 20 per cent since March 2021 when global supply chain constraints caused prices to soar.

While fronting a parliamentary committee to update the public on the RBA’s operations and activities, Ms Bullock acknowledged the pain these price rises had caused but noted they would not reverse.

“We know that high inflation has pushed prices up across the board over the past few years,” the RBA governor said on Monday.

“As my colleague Sarah Hunter explained in a fireside chat last week, while inflation has fallen materially, the price level isn’t coming ba

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