[b Inflation expectations fell in the first quarter while predictions for economic growth remain steady.
The Reserve Bank's quarterly survey of expectations shows business managers forecast annual inflation to average 2.24% over the coming year, compared with 2.72% in the last survey in November 2011.
Two year inflation expectations fell to 2.5% from 2.82%.
The Reserve Bank survey also shows economic growth is expected to be 2.1% in 2012, unchanged from the previous survey.
Expectations for two-year growth also remain unchanged at 2.6%.