New Zealand Q2 average 1-yr inflation expectations ease to 4.28%

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

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1970-01-01 08:00

WELLINGTON New Zealand's near-term rate of inflation is expected to continue to ease over the coming two years,

WELLINGTON 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% over the coming year, easing from 5.11% 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% from 3.30%. This is within the central bank's target range of 1% to 3%.

(Reporting by Lucy Craymer; Editing by Shri Navaratnam)