Annual inflation is expected to be back within the Reserve Bank's target band when fresh data is released this week.
Reserve Bank Governor Graeme Wheeler Photo: RNZ / Diego Opatowski
Official numbers on the consumers price index for the December quarter come out on Thursday and should show inflation is within the 1 - 3 percent band.
Kiwibank chief economist Zoe Wallis, is expecting inflation to have risen 0.2 percent in the last three months of 2016, over the September quarter.
That would bring annual inflation to 1.2 percent, roughly in line with the central bank's forecasts, she said.
"So what we are looking at it is higher petrol prices over the last quarter... Also, we are seeing ongoing price inflation in the construction industry as well, and anything related to building services."
The Reserve Bank could hold rates, she said.
"We are still talking about them leaving the Official Cash Rate on hold at 1.75 percent for an extended period."
