New Zealand CPI to stay below 1% in 2015 – BNZ

FXStreet (Guatemala) – Analysts at BNZ explained that New Zealand’s inflation issues are mainly about looking ahead, into 2016/17 – especially with a much lower currency in play now, for the first time in many a year.

Key Quotes:

“It will be interesting to see how this feeds through, with its usual lag. While the TWI has slumped about 12% since mid-April, its average for Q2 was not much lower than it was for Q1. But its Q3 average is set to be quite a bit lower than Q2’s. Feed that into business sector decisions on pricing and it takes us into late 2015, more like 2016.

For the remainder of calendar 2015, annual CPI inflation is likely to bobble along well below 1%.”

Analysts at BNZ explained that New Zealand’s inflation issues are mainly about looking ahead, into 2016/17 – especially with a much lower currency in play now, for the first time in many a year.

(Market News Provided by FXstreet)