The latest survey by the Reserve Bank shows inflation expectations held by business managers remain flat.
The survey shows 79 managers expect annual inflation to average 2.3% over the next two years, slightly up on the 2.2% recorded in the previous survey.
The survey also shows firms expect inflation to average 1.8% over the coming year, unchanged since the March survey.
The economy is expected to rise0.8% in the coming year and expand 2% over the next two years.
Most economists expect the Reserve Bank to leave interest rates on hold at 2.5% until next year, as rising unemployment offsets signs of a recovery.