Westpac: Past The Peak, But Still Red-Hot

Westpac estimate “that New Zealand consumer prices rose by 1.1% in the December quarter. That would see annual inflation slipping to 6.9%, down from 7.2% last quarter. Even so, that would still leave us with a picture of consumer prices that are continuing to charge higher, with annual inflation remaining close to multi-decade highs.”

• “The December quarter saw continued large increases in food prices and housing related costs. Those increases have been partially offset by falls in fuel prices."
• “Our forecast is lower than the RBNZ’s last published projection. A result in line with our forecast, while still high, would reduce the case for another jumbo-sized OCR hike next month.”