New Zealand Q2 average 1-year inflation expectations ease to 4.28%: central bank survey

NEW Zealand’s near-term rate of inflation is expected to continue to ease over the coming two years, a survey showed on Monday.

The Reserve Bank of New Zealand’s (RBNZ) quarterly survey of expectations showed business managers forecast annual inflation to average 4.28 per cent over the coming year, easing from 5.11 per cent in the previous survey in the first quarter.

Two-year inflation expectations – seen as the time frame when RBNZ policy action will filter through to prices – is seen falling to 2.79 per cent from 3.30 per cent. This is within the central bank’s target range of 1 per cent to 3 per cent. REUTERS