Australia & New Zealand Economics

Australia & New Zealand Chart Book

2 May, 2018

Inflation outlook remains subdued

Inflationary pressures picked up in the first quarter in Australia, with underlying inflation rising to the bottom of the RBA’s 2-3% target for the first time in two years. In contrast, core inflation in New Zealand slipped below the RBNZ’s 1-3% target for the first time since 2015. But we doubt this divergence is a sign of things to come. Indeed, we expect underlying inflation in both economies will struggle to get close to the middle of either central bank’s inflation target over the nex

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