Cheese and milk costs remain high despite a sharp fall in Global Dairy Trade auction prices.
The latest inflation figures showed the cost of dairy products to consumers had risen almost 10 percent over the last year, faster than the general inflation rate of 6 percent.
And, although prices have eased slightly from their peak, commentators have said it may be a while before there's any significant easing.
ASB chief economist Nick Tuffley spoke to AM Early.
Watch the video.
