New Zealand's economy wasn't doing as well as we thought, even before war broke out in the Middle East. 

Latest Stats NZ data shows GDP rose just 0.2% in the December quarter – well under the Reserve Bank forecast of 0.5%. 

Inflation hit 3.1% in the quarter, above the central Bank's forecast of 2.7%. 

The Herald's Liam Dann told John MacDonald if the Iran conflict continues, we could be at risk of "stagflation" – a combination of high inflation and low growth seen in the 1970s. 

LISTEN ABOVE