With expectations that inflation could bring further growth in the New Zealand economy this year has failed, as the Consumer Price Index data today was unable to show the expected numbers. On December, the prices on a quarterly basis moved by 0.1 percent only, showing a decline in the vegetables and household products, offsetting fuel increase. The inflation for 2017 wind up at 1.6 percent, achieving the Reserve Bank’s target of 1 to 3 percent, but remains below the 2 percent midpoint to consider interest rate hike by the RBNZ.,Westpac Senior Economist Michael Gordon stated that each sector associated with imported goods basically go downhill, with the largest decline in apparel and household content while new car prices fell by 6 percent.
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