In New Zealand, restrictive monetary policy has reduced pressures on the economy’s capacity, which has moderated consumer price inflation. Annual consumer price inflation is expected to return to the central bank’s target range of 1-3 percent by the end of 2024. The decline in inflation is partly due to lower price increases for imported goods and services. Globally, inflation has also eased in a number of advanced economies from its previous 30-year peak. However, services inflation is slowly falling and expected interest rate cuts continue to be delayed.