8 This is a useful measure of underlying inflation because it excludes one-off or highly volatile price movements that do not reflect fundamental sources of underlying inflation pressures. •  Survey measures of inflation expectations have fallen and are now consistent with inflation settling at 2 percent in the medium term.
Figure 4: Inflation expectations surveys and fitted curve  Source: ANZ Bank, Aon Consulting, Consensus Economics, RBNZ estimates. •  Non-tradables inflation is running at an annual rate of around 1.8 percent, but has been a little lower than forecast in recent years. This has also been the case in other advanced economies.