In the shock inflation print that scared the Reserve Bank off cutting interest rates at its latest meeting, two items gave governor Michele Bullock particular cause for concern.

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After the central bank kept the cash rate steady at 3.6 per cent on Tuesday, Ms Bullock did not rule out more rate cuts, if a spike in inflation proves to be temporary and price growth resumes its downward trajectory.

But a rise in the cost of new dwellings and the price of services, such as dentists and takeaway meals, suggests inflation could be more entrenched than previously feared.

That could rule out further rate cuts.

As it stands, Ms Bullock thinks the big

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