Inflation expected to be contained after painful adjustment

Reserve Bank officials may be tempted to take a victory lap or at least crack open a bottle of (cheap) champagne this Wednesday after the release of the latest quarterly consumers price index (CPI) data.
Inflation is widely expected to finally be back within the RBNZ’s target range of 1-3 percent for the first time in more than three years; an outcome that was somewhat pre-empted by last week’s widely expected decision to cut the official cash rate by half a percentage point to 4.75 percent.