14 Jan 2013

Inflation predicted to have remained steady

9:01 am on 14 January 2013

Economists expect inflation to have remained steady at 0.8% in the December quarter, lifting annual inflation to 1.1%.

Statistics New Zealand will on Friday publish the consumer price index for the last three months of 2012.

The inflation measure is expected to show rising housing and utility costs were only partially offset by lower food prices.

ASB senior economist Jane Turner says despite the low inflation rate, the Reserve Bank is unlikely to respond to fresh calls from business groups and unions to cut the Official Cash Rate.

The bank believes the Reserve Bank will leave interest rates at 2.5% until at least the end of the year.