Prime Minister Christopher Luxon says inflation may bounce around the 3 percent target rate.
Photo: RNZ / Mark Papalii
Some economists are predicing Monday's consumer price data for the three months ending September could push inflation to an 3 percent annually or possibly higher.
The Reserve Bank has an inflation target of a mandated upper limit of 3 percent for the year.
ANZ senior economist Miles Workman told RNZ inflation could be driven by factors like rising local council rates and power prices.
Speaking to Morning Report ahead of the release of quarterly figures, Luxon said people needed to look at the bigger picture.
"Isn't it great that it's [inflation] three percent not seven and a half percent?
"Looking at the big picture, where we have come from to where we are today, there is no doubt about it that inflation and interest rates are down from where they were under Labour, and that is a good thing.
"Yes, there is more for us to do, for sure. But, again, on inflation you got some ups you've got some downs."
The quarterly Consumer Price Index is due for release by Stats NZ at 10.45am.
