WELLINGTON (Reuters) – 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)