Cautious optimism from economists, ahead of the latest inflation numbers

Stats NZ will deliver its latest inflation update on the year to December at 10.45 this morning.

Many economists expect it to be slightly down - but ANZ predicts it will remain unchanged, and BNZ is forecasting a slight rise.

ASB Chief Economist Nick Tuffley says we need to still be cautious, as domestic inflation remains relatively high.

He says for inflation to stay around two percent, the domestic rate needs to come down.