NZ: CPI likely to rise by 0.6% in June quarter - Westpac

Michael Gordon, senior economist at Westpac, expects a 0.6% rise in the New Zealand’s Consumer Price Index (CPI) for the June quarter, which would lift annual inflation from 1.5% to 1.7%.

Key Quotes

“Higher fuel prices account for about half of the expected increase for the quarter. We expect measures of underlying inflation to hold steady.”

“A new method for measuring rents will lead to a small lift in the overall inflation rate from here on.”

“Our forecast is in line with the Reserve Bank’s view, and would not stand in the way of a further OCR cut in August.”