We still have an inflation problem
The drop in overall inflation to 4% is welcome, but it masks we still have a real problem.
![](https://i0.wp.com/www.kiwiblog.co.nz/wp-content/uploads/2024/04/image-4.png?resize=560%2C366&ssl=1)
This shows the annual inflation rate for both tradable and non-tradable inflation. Most of the tradable sector is international, so we have benefited from the trend there. But non-tradable (generally domestic) inflation remains very high at 5.8% and has barely come down from its peak.
I would not be counting on interest rate reductions too soon.