The consumer price index (CPI) rose 0.2% in the march quarter, after a fall of 0.5% in the December 2015 quarter.

Most inflation measures picked up, suggesting inflation may have bottomed out but it is still very weak, well below the bottom of the 1% to 3% target of the Reserve Bank.

That would normally prompt the bank to cut the cash rate to try and stimulate inflation. But on the other hand, real Estate Institute data shows house price inflation has picked up substantially after what seemed to be a slowdown earlier in the year.

Economists said an OCR cut was still likely but might be pushed further out by the news.