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Inflation Expectations Point To Further Easing In CPI

NEW ZEALAND

The RBNZ’s measure of business inflation expectations points to a further moderation in CPI inflation over the rest of this year and reinforces the central bank’s view that the economy is developing as it expects. 1-year ahead eased to 3.6% for Q4 from 4.2%, the lowest since Q3 2021 and 1.5pp below the Q1 2023 peak. The 2-year ahead measure has naturally been running below the 1-year and posted its third straight quarter at 2.8%, within the RBNZ’s target band, but to two decimal places is the lowest since Q3 2021. Household inflation expectations are released on November 15.

NZ Inflation %

Source: MNI - Market News/Refinitiv

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