Inflation expectations survey from the RBNZ
- One year ahead inflation expectations had a mean of 4.4% which is up from 3.70% last quarter. This is the highest one year ahead inflation figure since the November 1990 value of 5.9%.
- The mean for two year ahead expectations rose to 3.27% which represents a 31 percentage point increase from last quarter’s value of 2.96% and the highest value since 1991.
- five year ahead inflation expectations increased from 2.17% to 2.30%. As with last quarter this is again the highest reported figure since 5 year inflation expectations were added to the survey in August 2017.
- Ten year ahead inflation expectations rose slightly to 2.12%, up 25 percentage points from last quarter.
The 5 and 10 year rises are a little under what was feared. The RBNZ band is 1-3%, both are under the mid-point of it.