Key insights
- New Zealand's inflation expectations rose for the next two years, according to the RBNZ survey. While this is specific to New Zealand, it reflects global inflationary pressures. Higher inflation expectations could prompt the RBNZ to maintain a hawkish stance, potentially impacting global risk sentiment and indirectly influencing US equities through broader macroeconomic concerns.
SYDNEY, May 13 (Reuters) - New Zealand’s near-term rate of inflation is expected to rise over the coming two years, a Reserve Bank of New Zealand (RBNZ) survey showed on Wednesday.
Inflation expectations for two years, seen as the time frame when RBNZ policy action will filter through to prices, rose to 2.53% in the second quarter from 2.37% in the first quarter, RBNZ’s quarterly survey showed.
The survey data from 40 business leaders and professional forecasters saw annual price increases averaging 3.41% in the year ahead, up from 2.59% previously.