Australia is in a "very good position" on inflation but there are signs financial markets are being complacent about the geopolitical risks, the central bank boss says.

Reserve Bank governor Michele Bullock painted a rosy picture of Australia's economic outlook on Monday, as she fronted a parliamentary grilling for the first time since the federal election in May.

A bunch of fresh faces on the new-look Standing Committee on Economics were given a crash course on Australia's inflation environment.

Pleasingly, underlying inflation is back in the RBA's two to three per cent target band and forecasts are for it to keep easing towards the midpoint.

"So I think we're in a very good position in terms of inflation," Ms Bullock said.

Pandemic-era supply chain issues have eased, while higher in

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