Reserve Bank governor Adrian Orr expects inflation to be "under 3%" by the end of this year.
Aiming to eventually be between 1-3%, Mr Orr said the country was in "the last hard part", but lowering it further will take time.
Speaking at a Queenstown Business Chamber of Commerce breakfast at Heritage Queenstown yesterday, Mr Orr said the faster "price setters" had stopped increasing prices, the faster interest rates could be lowered, and the less unemployment there would be.
