Inflation rates show the economy is recovering well, maybe too well in some sectors

Figures from Stats NZ put the annual inflation rate at a 1.4 percent, but points out that prices for used cars, furniture and electronics are being driven up because of supply constraints.

Kiwibank chief economist Jarrod Kerr says they want the Official Cash Rate kept at 0.25 percent until well into 2022 to stabilise one market in particular.

He says the rise in house prices is concerning and we need to think about how to rein it in, rather than stimulate.