High NZ dollar helps to alleviate inflation pressures

Key highlights CPI expected to increase by a subdued 0.2% in Q4, reflecting lower food prices and a high NZ dollar. NZ dollar strength expected to drive annual headline CPI to the middle of the RBNZ's target band this year. Recent inflation indicators also point to little urgency for the RBNZ to raise the OCR.     Report prepared by: Christina Leung ASB Economist Phone: +64 9 301 5661 Fax: +64 9 302 0992