Inflation is bad for business if its input costs going up and businesses can't increase prices due to competition or other regulatory constraints. Inflation is good for business if its increasing margins by increasing prices more than costs change (or less discounting increasing the effective price received). If inflation gets above 3% the RBNZ is required to try and contain it and their primary (only?) tool is raising interest rates to cool the economy. Inflation at circa 1-2%, as it currently is has the RBNZ basically saying I'm happy with this so there's no need to change interest rates from their current level.
If there was inflation in the economy and house prices were to remain static for a long time, this would slowly correct the imbalances some see in the housing market. Peoples salaries would go up and house price to income ratios would fall making them more affordable without house owners needing to sell at a loss. Those looking to buy would be happy, but not those owning property.