Encouraging news for households feeling squeezed by financial pressures.

Stats NZ figures show the inflation rate for the year to December hasn't changed, sticking at 2.2 percent.

The largest driver behind annual inflation was rent, up 4.2 percent.

Westpac Senior Economist Satish Ranchhod says it's close to the Reserve Bank's target -- and the economy is still looking soft.

He thinks those together are a green light for another 50 basis point cut next month -- and says we'll likely see further cuts beyond that.