Will's Word: Low inflation deserves collective sigh of relief and applause

Can we all breathe a collective sigh of relief over news that inflation is at a near four-year low people?

Worthy of a clap which dare I say could lead to even lower interest rates next month which is fantastic news.

Now for a bit of context if you're not aware of what inflation is. Inflation of course, measures how much the prices of goods and services are rising.

Now, a steady or lower inflation rate means less pressure on our wallets, of course.

In the three months leading to December, inflation only rose by 0.5 per cent, keeping the annual rate at around 2.2 which is the lowest since March 2021. Worthy of celebrating.

Now it kind of begs the question, well what's driving this?

A steady or lower inflation rate means less pressure on our wallets. Photo/Supplied

Higher rents, second-hand cars, airfares, and accommodation have pushed prices up, but drops in things like fuel and food have helped to keep inflation pretty much in check, is the only way I could describe it.

So it pretty much means the Reserve Bank is likely to cut interest rates next month, which is fantastic news.

As you've seen perhaps, well perhaps you may or may not know this depending on whether you've been listening to this show last year, a rate cut usually means borrowing cheaper, which could lower mortgage payments, help businesses invest and grow, you name it.

Overall, I guess that some costs, like rent and second-hand cars are still rising, the lower increase though in prices shows the economy is cooling down in a pretty controlled way.

Listen to Will's Word below.

So are the Reserve Bank's measures working?

'Cooling your jets people' is what the Reserve Bank Governor asked for a few years ago and we have listened clearly.

Now, if rates are cut it'll provide that little bit of extra relief for Kiwis, of course, looking to save or pay off debt.

So things are looking positive people, as we're headed into 2025 and I'm going to say it as I always do, Wunderbar news indeed.

That's Will's Word.