Signs we could be reaching the endpoint of the inflationary cycle

Economists are expecting annual inflation will have risen to three percent in the September quarter - up from 2.7 percent in June.

This reflects higher prices for food, power and rates - which continue to position the cost of living front of mind for households.

But ASB's Mark Smith says the three percent CPI will likely be short-lived - with a softer domestic backdrop and a lot of spare capacity in the economy.

He says that will result in inflation settling at a lower level - prompting the Reserve Bank to cut the Official Cash Rate.