Articles tagged CPI

Annual inflation continues to run low, suggesting there’s still some capacity in the economy that will help the Reserve Bank keep interest rates at record lows well into next year, writes Thomas Coughlan.

The effects of inflation have been much heavier in the last decade for poorer consumers than rich ones. That's because tax and policy moves have effectively been regressive, including increases in GST, fuel and cigarette taxes, along with falling prices for goods and services used more by richer consumers.

Annual inflation stood at just 1.1 percent according to data released by Stats NZ on Wednesday, but economists predict that number will rise as tightness in the Labour market fuels wage increases. Thomas Coughlan reports.

The consumers price index (CPI) rose 0.5 percent in the March 2018 quarter, Stats NZ announced today. This is in line with the market expectations, but slightly above those of most bank economists here.

New Finance Minister Grant Robertson faces a tough time convincing existing Reserve Bank staff that they can run the economy hotter to get unemployment below four percent, at least for now.