A prediction inflation will spike at four percent

It reached 3.3 percent in the June quarter, and wages have gone up by 2.1 percent.

ASB's just released its quarterly economic forecast.

Chief economist Nick Tuffley says inflation will hit four percent later this year, some of which reflects how low inflation was last year.

On top of that, he says it's becoming more expensive to import goods into New Zealand, plus wage-related inflation is starting to flow through.