The inflation rate is headed in the right direction, but the Reserve bank won't be cutting interest rates anytime soon.

New figures out today show the annual inflation rate has fallen to 6 per cent for the year to June, from 6.7 per cent in the year to March.

NZ Herald Wellington business editor Jenee Tibshraeny says inflation rates are on par with what the RBNZ is expecting- but the battle to rebalance the economy is far from over.

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