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Annual inflation has risen to a 15-month high of 3%.

Economists had been expecting inflation to reach or surpass the 3% upper limit of the Reserve Bank's target band.

The central bank's expected to look past this current spike when it reviews the OCR next month.

New Zealand Herald Business Editor-at-large Liam Dann told Kerre Woodham that, “this this drip feeding of the rate cuts means that everybody just waits.”

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