Today's CPI update shows inflation holding steady at 7.2 percent, undercutting earlier predictions.

The markets have noticed that the figures were lower than predicted, leading to interest rates moving lower following the announcement.

Milford Asset Management's Katlyn Parker says that at the end of the day, inflation is still running too high and if the CPI figures stay elevated for a long enough time frame, price increases will still be an issue.

LISTEN ABOVE

• ANZ Economists predict inflation to be 7.2 percent once more
• Jenee Tibshraeney: Banks believe inflation may have peaked
• Business confidence at record low, but inflation pressures remain
• 75 percent of Kiwi workers feel their incomes haven't kept up with inflation