New Zealand’s Softer Inflation Signals Rate Hikes Nearing End
- Annual rate drops to 6.7%; central bank forecast acceleration
- Economists expect RBNZ to deliver final rate increase in May
A cyclist rides past the city's skyline in Auckland, New Zealand.
Photographer: Brendon O'Hagan/BloombergThis article is for subscribers only.
New Zealand inflation slowed more than economists expected in the first quarter, suggesting price pressures have peaked and the central bank may soon call an end to its aggressive tightening cycle. The local dollar fell.
The annual inflation rate declined to 6.7% from 7.2% in the final quarter of 2022, Statistics New Zealand said Thursday in Wellington. Economists expected 6.9% while the Reserve Bank was picking an acceleration to 7.3%.