New Zealand Treasury expects gradual decline in annualized inflation in the near-term

The monthly economic indicators report released by the New Zealand Treasury shows the annualized inflation is seen gradually declining in the near term as large quarterly increases [driven by petrol in the late 2016 and early 2017] fall out of the annual calculation.

Key points

CPI is slowly seen rising back towards 2%

The outlook for the third quarter  economic growth is mixed

Expects flat residential construction in the second half