New Zealand might not be entirely out of the woods with high inflation. 

The Consumers Price Index rose 4.7% in the year to December, a two year low. 

The New Zealand Institute of Economic Research says inflation is still above the 1-3% Reserve Bank target. 

Principal Economist Christina Leung told Roman Travers that while she expects the figure to get under the target this year, some factors are putting that at risk. 

She says things like the Red Sea attacks are driving up shipping costs.

LISTEN ABOVE

New Zealand might not be entirely out of the woods with high inflation.  
The Consumers Price Index rose 4.7% in the year to December, a two year low.  
The New Zealand Institute of Economic Research says inflation is still above the 1-3% Reserve Bank target.  
Principal Economist Christina Leung told Roman Travers that while she expects the figure to get under the target this year, some factors are putting that at risk.  
She says things like the Red Sea attacks are driving up shipping costs. 
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.