CPI preview: Is inflation on the rise again?

Economists expect a slight rise in consumer price inflation , driven by increasing food prices . Inflation is projected at 0.7% or 0.

8% for the quarter, with an annual rate of 2.3% or 2.4%.



Core inflation remains within the Reserve Bank ’s target , but imported cost pressures limit overall inflation decline. Economists expect that the rate of consumer price inflation rose slightly in the first quarter of the year, with rising food prices largely to blame. However, they don’t see that as a threat to the Reserve Bank’s (RBNZ) projected rate cuts .

.. yet.

Inflation is tipped to land at 0.7% or 0.8% for the quarter, taking the annual rate to 2.

3% or 2.4% – up from 2.2%.

“Core inflation remains comfortably back inside the RBNZ’s 1% to 3% target band,” said Westpac senior economist Satish Ranchhod..