Iran and iPhones add to Reserve Bank's inflation pickle

Markets are pricing in a growing probability the Reserve Bank will raise rates at its next meeting. (Susie Dodds/AAP PHOTOS)

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.