Michael Gordon, Senior Economist at Westpac, expects a 0.5% rise in the New Zealand’s Consumer Price Index (CPI) for the March quarter, which would see annual inflation drop to 1.1%, its lowest since September 2016.
“We estimate that the new Government’s policy of a year’s free tertiary education will knock 0.2% off the CPI.”
“The dip in annual inflation is partly a timing issue that is likely to be short-lived.”
“However, we expect inflation to remain on the lower side of the Reserve Bank’s inflation target for some time yet.”
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