Independent economist Chris Richardson says it's getting harder for central banks to navigate the current environment, with risks of either over- or underestimating the inflation problem.

Speaking to Rachel Pupazzoni on Close of Business, Mr Richardson said there were clearly reasons to be worried.

"You can see falls in prices in commodities, you can see it in the cost of freight… but, to be fair, there are risks to the other side as well.

"So far in much the western world, unemployment has barely budged off its lows, there is indication of inflation stickiness, particularly in services.

"In other words, the chance of a mistake, whether it's the deflationary one… or an inflationary one that central banks have been worried about, that is clearly on the rise," Mr Richardson said.

"To be fair inflation did need to be fought around the world, and there was always going to be a cost to that."

You can watch that full interview tonight on Close of Business at 9:30pm AEST tonight on ABC News Channel or anytime on iView.

In the meantime, here's our story from earlier in the week on why the Reserve Bank left interest rates on hold this month, but the pause could be short-lived: