The Treasury notes that far from being something to simply blame Russia for, inflation is, in fact, being "driven by strong domestic demand pushing up against constrained supply"—domestic demand. Treasury predicts that inflation will be 6.7 percent this year, will persist at 5.2 percent next year, and will continue outside of the target range at 3.6 percent in 2024. The cost of living crisis is here to stay. Not in decades has New Zealand seen persistent inflation of this sort. 