Economics
New Zealand Inflation Surges, Fueling RBNZ Rate-Hike Bets
- Annual inflation rate of 3.3% is fastest in 10 years
- Investors now see 90% chance of RBNZ rate increase in August
This article is for subscribers only.
New Zealand inflation surged in the second quarter, breaching the central bank’s target range for the first time in 10 years and fueling bets it will start raising interest rates as soon as next month.
The annual inflation rate jumped to 3.3%, more than double its first-quarter reading of 1.5% and the fastest pace since 2011, Statistics New Zealand said Friday in Wellington. Economists expected 2.7%. Consumer prices advanced 1.3% from three months earlier, exceeding the 0.7% median forecast.