Households and businesses are bracing for more pain on the horizon in the form of higher interest rates, as the central bank continues to wage war on inflation.
The Reserve Bank has warned the cost of borrowing will continue to rise, as the cost of living continues to bite.
Persisently low unemployment has been hailed as good news by the government.
But there's a more pessimistic response from some economists who say that's putting more pressure on inflation.
Here's our political editor, Jane Patterson.
