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Midpoint


  • Inflation is going to do something it has done only fleetingly in the past 5 years: fall to around the mid-point of the 1% to 3% inflation target band.
  • We expect this week’s Q2 results to show a 0.6% qoq increase in the CPI, pulling annual inflation down to 2%.
  • Resource constraints are slipping away at a dramatic pace, highlighting that the sustained contraction in the economy will filter through to inflation over time.  Most indicators within recent business surveys point to subdued price and cost pressures over 2009.

Read the full PDF report.

 


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Report Prepared by:

Jane Turner
ASB Economist
Phone: +64 9 374 8185
Fax: +64 9 302 0992


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