UPDATED: 5.03PM There's an accusation low inflation is distorting our economy, and hiding the true scale of the housing crisis.

Statistics New Zealand figures show inflation was 0.4 per cent for the year ending March.

But Green Party finance spokesperson Julie Anne Genter said wages are also low, and housing costs are outstripping any gains from low inflation.

"We have rents increasing by about 5 per cent in the last year in Auckland. If your wages aren't going up, and about half the people's wages haven't moved, then your actually worse off."

Genter said the Reserve Bank held off cutting interest rates as long as it could, but this might force them to cut the OCR again.

"It looks like they've decided they need to look at the rest of the economy, and fair enough. It's the Government's responsibility to do something about house price inflation and they've simply failed to do anything."

The Government's adamant the way to fix skyrocketing house prices, is by building more houses.

Finance Minister Bill English said that's for the Reserve Bank to decide, and they're focused on the long-term solution of increasing supply.

"We've got strong conditions for demand, low interest rates, quite a lot of migration, people getting wage increases, and we have to get more houses on the ground, so it's a positive type of problem to have."