Reserve Bank governor Philip Lowe (Image: AAP/Joel Carrett)

All eyes will be on the RBA’s February board meeting tomorrow to see how it responds both to last week's Consumer Price Index (CPI) figures and the US Federal Reserve's commitment to hiking interest rates in coming months.

But the challenge for the central bank is how it will tackle inflation when some of the key drivers are outside the scope of monetary policy.

The December quarter CPI rose 1.3% to be up 3.5% over the year. The trimmed mean figure used by the RBA rose an annual 2.6%, above the central bank’s forecast for a 2.25% rise at the end of 2021. But if you examine the components of the rise, you'll see the RBA can’t do very much.