MNI: New Zealand Infl Expectations Rise Slightly In Q3

By Sophia Rodrigues

     SYDNEY (MNI) - Inflation expectations lifted slightly in the third quarter

with two-year expectations slightly above the middle of the Reserve Bank of New

Zealand's target band.

     The quarterly survey conducted for the RBNZ by The Nielsen Company and

published Wednesday showed one-year inflation expectation rose to 1.86% from

1.80%, taking it back to the level seen in the Q1 survey. Two-year expectations

rose to 2.04% but was below 2.11% seen in Q1 survey.

     The survey also published view on house price index which showed a fall in

expectation for prices one year ahead, but a rise two years ahead. Overall, the

data continues to signal house prices are expected to rise at a slower rate over

the next two years.

                                          Q3     Q2

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Inflation 2-year ahead (mean)          2.04%  2.01%

Inflation 1-year ahead (mean)          1.86%  1.80%

Inflation 5-year ahead (mean)          2.15%  2.10%

Inflation 10-year ahead (mean)         2.09%  2.18%

House Price Expectation 1-year ahead   2.43%  2.74%

House Price Expectation 2-year ahead   2.42%  2.15%

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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