NZ: Expect 0.1% rise in CPI for the June quarter - Westpac

Michael Gordon, Acting Chief Economist at Westpac expects a 0.1% rise in the NZ’s Consumer Price Index (CPI) for the June quarter, which would reduce the annual inflation rate to 1.8%.

Key Quotes

“A well-publicised spike in vegetable prices has been offset by a fall in fuel prices.”

“Our forecast is lower than the Reserve Bank’s estimate of a 0.3% quarterly rise. However, the Reserve Bank was already expecting the recent pickup in inflation to recede over the coming year.”

“We expect the OCR to remain unchanged until 2019, in contrast to market expectations of a rate hike by mid-2018.”