New Zealand's rate of annual inflation has dropped to just 0.2 per cent for the year to September 30. It had previously been at 0.4 per cent for the 12 months to June 30.
The Consumer Price Index figure showed inflation was also at just 0.2 for the September quarter.
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He said he still expected the RBNZ to cut the OCR in November.
"There remains the risk of a further cut in 2017, but this CPI outcome does not add to the case for such a move."
Tomorrow fresh statistics will tell us that the cost of living is barely rising at all.
The Consumer Price Index for the September quarter is forecast to show inflation has fallen in the past three months and is only just above zero for the year .
Most economists are picking it will come in at 0.1 or 0.2 per cent for the year to September 30 - down from 0.4 per cent in the year to June 30.
That's dangerously close to deflation and it will be treated as bad news by economists.
But many New Zealanders will be feel that the low inflation story doesn't stack up with their daily experience.
That's because one of the largest and most fundamental costs we face in life continues to rise more than anything else.
House price inflation - other than for new builds - is excluded from the CPI so if you are saving for a home or taking on a giant mortgage you're not going to feel like the cost of living has fallen.
And those accommodation costs that the CPI does catch are rising faster than any other category.