New Zealand Treasury: This year's inflation may be slightly higher than forecast

New Zealand Treasury Monthly Economic Report for the month of May has been published in its website, noting that data shows economy has grown at a reasonable pace in 2016, while adding that inflation may 'slightly higher' than forecast in budget update.

Key headlines

- Inflation outlook remains weak

- Some pricing pressures appear to be emerging

- Wages, construction and fuel prices driving higher pricing intentions

- Inflation may 'slightly higher' than forecast in budget update

- Overall economy tracking slightly better than expected