The Reserve Bank believes we are there or there-abouts when it comes to peak inflation

The central bank has increased Official Cash Rate by 50 basis points to two-percent, in response to recent high inflation.

Inflation is sitting at 6.9 percent.

Governor Adrian Orr says it could edge a little higher in the quarter we're in, due to oil prices.

But then they expect it to start to decline.

He says we don't get back within the target range until the end of next year, and then back at the midpoint the year after -- so they've got some lifting to do.