Annual inflation to the end of the September quarter is expected to slow to about 3.9%, mainly due to lower fuel prices in July and August, but the improvement is seen as temporary. Fuel prices remain painfully high, feeding into airfares and building costs, while food prices and local body rates are rising. Some economists expect annual inflation to move past 4% by year end, with ASB forecasting 4.5%, as fuel prices resurge and the New Zealand dollar weakens. Core measures are seen at the top of the Reserve Bank's target band and show few signs of easing, keeping an October cash rate hike firmly on the table. The odds of a 25 basis point rise to 3% at the October 28 review are put at nearly 90%, with a 50% chance of a further increase in December.
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Read the original on rnz.co.nz ↗
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inflationNZDUSDinterest ratesRBNZ
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Related tickers and likely impact
NZD/USD
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 0.56844 |
| Change that session | +0.38% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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