Australia’s central bank is grappling with demand in the economy that’s proving “a little bit stronger” than expected and helping to keep inflation pressures elevated, Governor Michele Bullock said.

Monetary policy is unable to impact price rises in areas like property rents and insurance costs, the Reserve Bank chief pointed out in a panel discussion on Tuesday in Hong Kong. She also said that while wage gains aren’t excessive, a lack of productivity growth meant that unit labor costs are climbing.