Falling import prices are set to follow through, to cheaper prices for almost everything else

Overall inflation is back within target at 2.2 percent, but domestically-driven non-tradable inflation is continuing to track higher at 4.9 percent.

Rents, council rates and insurance premiums are all up by at least 12-percent after last year's severe weather events, and the recent spike in infrastructure costs.

Kiwibank Chief Economist Jarrod Kerr says inflation has been easing faster on imported goods.

He says the next phase -- that will happen over the next year -- is domestic inflation getting back down to about three-percent.