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AAP
AAP
Ben McKay

Inflation drops to 5.6 per cent in New Zealand

Food has been the largest contributor to New Zealand's inflation in the 12 months to September. (Joel Carrett/AAP PHOTOS)

Inflation has dropped in New Zealand to its lowest level in two years, with the consumers price index falling to 5.6 per cent.

The below-expected result will raise hopes that the Reserve Bank (RBNZ) can now wrap its run of interest rate hikes, and begin thinking about downwards move.

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