Stats NZ figures showed consumer prices rose 0.6 percent in the three months ended March, taking the annual inflation rate down to 4 percent from 4.7 percent - the lowest since June 2021.
It is still above the Reserve Bank's February expectation of 3.8 percent.
However, domestic inflation pressures were stubborn and RBNZ made it clear inflation remained too high.
It said last week it was confident inflation would be back in the 1-3 percent target band by the end of the year, but it would need to keep interest rates high in the meantime.
For now, RBNZ has left its official cash rate unchanged at 5.5 percent.
Economists had predicted a slight increase in the quarterly consumer price index of 0.6 percent, and the annual rate falling to 4 percent.
ISSUE
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Friday, May 3, 2024
Volume 16 . Issue 6