New Zealand's annual inflation cooled down as expected to 4 percent in March, data shows.
Annual inflation had been over 4 percent since September 2021. March's data showed the smallest price increases since then, Statistics NZ consumer prices senior manager Nicola Growden said in a statement.
"However, they remain above the Reserve Bank of New Zealand's target range of 1 to 3 percent," she added.
Quarter-over-quarter, the consumer price index rose slightly to 0.6 percent - driven by costlier alcoholic beverages, recreation and housing.
The Reserve Bank (RBNZ) has been looking for signs inflation is cooling before starting to lower the official cash rate from a 15-year high 5.5 percent.
It kept the baseline interest rate unchanged last week but central bank Governor Adrian Orr has signalled cuts were getting closer - provided inflation continued cooling.
March's data was "good news" but "non-tradeable inflation (domestic-based pricing pressures) was stubbornly high at 5.8 percent... after a large quarterly rise," said Infometrics principal economist Brad Olsen, noting it was the largest rise in year.
The RBNZ, which has kept the official cash rate on hold for seven consecutive meetings, was due to make its next announcement on May 22.
In March, housing costs continued to apply upward pressure on yearly inflation - with property rates (up 9.6 percent) and rents (4.7 pct) contributing the most. Rents were rising at the fastest pace since 1999, Olsen said.
Recreation and culture inflation accelerated to 5.6 percent in the year to March, driven by accommodation services.
