Times have been tough for the rural sector, but there may be light at the end of the tunnel.

Rural cost inflation came in at 15.3 percent in the December 2022 quarter, but economists are predicting a sharp drop.

Westpac Senior Agri Economist Nathan Penny predicts rural cost inflation will fall to 4 percent come December 2023.

"There's some big costs that have already started falling, like fertiliser and fuel. And from here, we think we can add feed costs- the price of grazing, the price of grains and things like that. With all the really bad weather we've had, there has been a silver lining."

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