Inflation expectations have weakened.
The Reserve Bank's quarterly poll shows business managers expect inflation will be 1.85 percent in two years time, compared with 1.94 percent in the previous period.
It is one of the gauges used by the Reserve Bank to assess inflation pressures.
The result is still below the central bank's two percent mid-point, so some analysts expect a cut to the Official Cash Rate to 2.5 percent next month.
