Annual inflation looks to be heading towards just over two percent by the end of the year

Stats NZ's Selected Price Indexes show food prices dropped 0.1 percent in November compared with October - headlined by fruit and vegetables, down 2.9 percent.

Rental prices rose a modest 0.2 percent for the month, while annual rental inflation eased to 4.1 percent.

ASB Senior economist Mark Smith says overall, consumer prices were flat in November.

He says the figures were held up because there was only a small fall in food prices.