Iran war drives inflation data, but how will it affect the federal budget?

Australians got numerical proof yesterday of the cost pressures they're feeling across the economy.

Headline inflation accelerated dramatically in March, with consumer prices increasing at an annual pace of 4.6% - up from 3.7% in February.

Transport costs were the biggest driver, with petrol prices jumping more than 30% in March.

But trimmed mean inflation - which is the Reserve Bank's preferred measure - remained steady at 3.3% ahead of an interest rates decision next Tuesday.

• Guest: Sally Auld, NAB Chief Economist