Inflation likely to continue - bank economists

The comments follow last week's announcement that the Consumers Price Index (CPI) increased 5.9% in the year to December.

This was aided by a 1.4% rise in the December quarter, and is the highest annual rate since 1990.

“High NZ inflation does not seem to be transitory,” said the bank's senior economist Mark Smith.

“A broadening front of rising inflation is emerging that will be difficult to slow, and we expect annual CPI inflation to remain above 3% well into 2023,”