NZ: CPI rose 0.1% in Dec quarter - Westpac

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.”