Michael Gordon, senior economist at Westpac, notes that the New Zealand’s Consumer Price Index (CPI) rose by 0.1% in the December quarter, maintaining the annual inflation rate at 1.9%.
Key Quotes
“A sharp fall in fuel prices has taken some of the pressure off headline inflation in the near term.”
“However, locally-generated inflation pressures have been stronger than the Reserve Bank forecast.”
“We expect a gradual pick-up in inflation over the next few years, though it will be some time before the RBNZ needs to respond with higher interest rates.”
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