New Zealand Inflation Exceeds Forecasts, Spurring Rate-Hike Bets

New Zealand inflation unexpectedly held above the top of the Reserve Bank’s 1%-3% target last quarter, prompting markets to boost bets on a July interest-rate hike as the impact of an Iran-war driven surge in fuel prices is still to come.

The currency and bond yields gained after the Consumers Price Index climbed 3.1% from a year earlier, matching the pace in the fourth quarter and above a forecast 2.9%, official data showed Tuesday. Prices advanced 0.9% from the preceding three months, also exceeding estimates.