The latest Consumer Price Index on the 25th of January 2023 revealed quarterly inflation increased by 1.4% with the annual inflation rate being 7.2 per cent increase in the 12 months to December 2022.

This result follows months of high inflation where prices frequently rose faster than at any time since the early 1990s. The 7.2 per cent increase follows another 7.2 per cent annual increase in the September 2022 quarter, and a 7.3 per cent increase in the June 2022 quarter.

Housing and household utilities were the biggest contributors to the December 2022 annual inflation rate. Being due to the rising cost for both constructing and renting housing.

Economists have seen some promising signs in the data and lowered their expectations for the Reserve Bank OCR (Official Cash Rate) hike next month. ANZ has now predicted a 50 basis point hike, as opposed to 75 basis points.

The next OCR announcement is on the 22nd of Feb 2023.