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Economics
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Food inflation sours over festive season, RBNZ smells victory

ANZ forecasts CPI inflation below 5% late last year, with the RBNZ expected to stay on the sidelines next month.

Inflation is coming down – albeit more slowly than hoped.

Key points
  • What’s at stake: Whether the RBNZ needs to hike the official cash rate again in 2024 because of stubborn inflation pressures. 
  • Background: Stats NZ data out today showed food price inflation rose at the lowest level in two years. The central bank kept the OCR at 5.5%, as widely expected, in November. But it said it had a ‘willingness’ to hike again, if needed this year.
  • Key players: RBNZ, Adrian Orr, Christian Hawkesby, Stats NZ, ANZ, Sharon Zollner, Henry Russell, ASB, Kim Mundy.

Food price inflation has slowed further, with annual CPI inflation expected to fall below 5%, giving the RBNZ the ability to hold interest rates steady early this year.

Statistics NZ data out today showed food prices climbed at an annual rate of 4.8% in December, compared with a year ago, the lowest

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Key points
  • What’s at stake: Whether the RBNZ needs to hike the official cash rate again in 2024 because of stubborn inflation pressures. 
  • Background: Stats NZ data out today showed food price inflation rose at the lowest level in two years. The central bank kept the OCR at 5.5%, as widely expected, in November. But it said it had a ‘willingness’ to hike again, if needed this year.
  • Key players: RBNZ, Adrian Orr, Christian Hawkesby, Stats NZ, ANZ, Sharon Zollner, Henry Russell, ASB, Kim Mundy.
Food inflation sours over festive season, RBNZ smells victory
Economics,
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