One expert has warned that inflation is set to remain high "for a bit longer".
Devon Funds' Tama Willis joined Breakfast this morning to discuss the economy.
"In February, all the biggest New Zealand companies reported their results for the six months ended December, and if you look across expectations, they probably missed slightly, but still reasonable results," he said.
"Pretty strong revenue growth, and they're passing on a lot of the costs that we're seeing to their end users and consumers.
"But profits probably grew a bit more modestly than expected," Willis added.
Inflation's effects are set to continue, he warned, pointing to possible insurance hikes and continued high food prices as a result.
"The inflationary picture probably stays up for a bit longer," he said.
"I think Kiwis will be cutting back further on discretionary items, whether it's holidays, whether it's clothing, or things they don't need.
"Over time, we'd still expect inflation to come down, so there might be some hope further out.
"But right now, it's challenging."
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