Over in the UK, inflation has dropped to 2.3 percent, the lowest in 3 years.
It heaps pressure on the Bank of England to cut high interest rates - and gives the Government a welcome boost.
UK correspondent Gavin Grey says this drop is significant - but it's not as low as predicted.
LISTEN ABOVE

Gavin Grey: UK correspondent on the UK announcing sanctions on West Bank settlements
06:37

Jenee Tibshraeny: NZ Herald Wellington business editor on ACC Minister Scott Simpson promising a crackdown on fraud
04:27

Jeremy Hutton: Milford Asset Management expert on KMD Brands' share price going up after 'brutal' few months
03:12