New Zealand second-quarter inflation was slightly lower than economists had expected but in line with central bank forecasts as housing-related prices continue to push higher.
Annual inflation is still running low at 1.5 percent, according to CPI data released by Statistics NZ this morning.
Weak levels of inflation expected to be revealed in new data are an indication of missed economic growth, an economist says. Thomas Coughlan reports.
Construction inflation across New Zealand's main cities is expected to slow in coming years as escalating costs soften demand, according to an industry report.
Hikes to New Zealand's minimum wage and a move towards collective bargaining will accelerate the pace of pay rises over the next five years and spur inflation, ASB Bank economists say.
Nurses and teachers are pushing the Labour Government for massive pay increases, but the Government is rejecting their claims on the grounds of being fiscally responsible -- for now. Thomas Coughlan reports.
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.
Māori households saw the highest inflation in the March quarter and price rises for cigarettes and tobacco had the largest impact on inflation for most household groups, Statistics New Zealand said.
The Reserve Bank has left the official cash rate or OCR at 1.75 percent for the tenth consecutive decision. In a statement this morning the RBNZ said it expected the rate to stay at 1.75 percent for “some time to come”, with the risks of either cuts or increases evenly balanced.
New Zealand businesses see a slower pace of inflation in the coming year, although firms anticipate wages will rise at their fastest pace in four years as economic growth remains robust.