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New Zealand’s Red-Hot Inflation Cements Rate-Hike Expectations

  • Inflation accelerates to fastest pace in more than 31 years
  • Traders pricing in quarter-point rise at Feb. 23 RBNZ meeting
General Economy In Auckland As New Zealand Set to Lift Rates
Photographer: Brendon O'Hagan/Bloomberg
Updated on

New Zealand’s inflation accelerated to the fastest pace in more than 31 years, reinforcing bets that the nation’s central bank will remain one of the leaders of the global tightening cycle. 

Annual inflation surged to 5.9% in the final three months of 2021 from 4.9% in the prior period, Statistics New Zealand said Thursday in Wellington. That was the fastest pace since 1990, shortly after the Reserve Bank began targeting inflation to try to contain an outbreak from the previous decade.