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Michael Gordon, senior economist at Westpac, expects a 0.6% rise in the New Zealand’s Consumer Price Index (CPI) for the June quarter, which would lift annual inflation from 1.5% to 1.7%.

Key Quotes

“Higher fuel prices account for about half of the expected increase for the quarter. We expect measures of underlying inflation to hold  steady.”

“A new method for measuring rents will lead to a small lift in the overall inflation rate from here on.”

“Our forecast is in line with the Reserve Bank’s view, and would not stand in the way of a further OCR cut in  August.”