New Zealand inflation data for Q2 due 2245GMT - preview

Author: Eamonn Sheridan | Category: News

I posted a preview here yesterday

More now.
This via Westpac:
  • We expect a 0.1% rise in the Consumer Price Index for the June quarter
  • This would bring the annual inflation rate down from 2.2% to 1.8%
  • A well-publicised spike in vegetable prices has been offset by a fall in fuel prices. We expect other seasonal influences to be a slight negative on balance.
  • Our forecast is below the Reserve Bank's estimate of a 0.3% quarterly rise. However, the Reserve Bank was already expecting the recent pickup in inflation to recede over the coming year.
  • We expect the OCR to remain unchanged until 2019, in contrast to market expectations of a rate hike by mid-2018.