Inflation expectations have fallen to their lowest level in nearly three years.
The Reserve Bank's quarterly survey of business managers shows 2-year inflation expectations, which the bank pays particular attention to, eased from 2.5% percent in February to 2.41% in May.
It's the lowest result since the third quarter of 2009.
One year inflation expectations eased to 2% in the coming year, compared with 2.24% in February.
Respondents are also picking economic growth to remain steady at 2% in the coming year, growing to 2.4% over two years, compared with 2.6% in the previous survey.
