Inflation has defied many expectations by falling in the third quarter.  

Figures show it rose 5.6% in the year to September, a drop from 6.0% in the year to June. 

The Reserve Bank had predicted it would be six%, and many economists picked between 6.1-and-6.2%.  

Herald Business Editor at Large, Liam Dann, told Kerre Woodham that it shows the Reserve Bank is making the right moves.  

He says monetary policy is obviously working and getting people to put their wallets away. 

LISTEN ABOVE 

• Inflation cooled slightly in late winter and September