Annette Beacher, chief Asia-Pacific macro strategist at TD Securities, expects no change to overall prices of NZ economy in Wednesday’s Dec qtr CPI report, which should lower the annual inflation rate to 1.8%/y.
Key Quotes
“The RBNZ’s November projection assumed inflation would lift from 1.9% to 2.0%/y, but fuel prices turned out to be much weaker.”
“The market median is also for a flat print, although there are more analysts at +0.1%/q.”
“All forecasts are below the RBNZ’s November forecasts, but underneath the declines in Food and fuel prices, we expect a steady “core” of rising prices, particularly in the services industry.”
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