Reserve Bank of New Zealand Governor Says Core Inflation Remains Too High

The video discusses the current economic situation in New Zealand, focusing on the official cash rate (OCR) set at 5.50%. It highlights how this rate is intended to control inflation and support sustainable employment. The economy is evolving as expected, with activity slowing in interest rate-sensitive areas. Labor shortages are easing due to reduced demand and high immigration. While headline inflation and expectations have decreased, core inflation remains high, mirroring global trends.

What factors are contributing to the easing of labour shortages as discussed in the text?

What is the overall trend of headline inflation and inflation expectations according to the text?