New Zealand inflation surge points to more rate hikes

· Economy · New Zealand

New Zealand inflation likely eased slightly in the third quarter, but the respite is set to be short-lived as a weaker currency and surging oil prices drive an acceleration in the final three months of the year, building the case for rate hikes.

Why it matters：Rising inflation expectations in a small open economy illustrate how oil prices and weaker currencies are exporting price pressure worldwide.

Key points

  • Third-quarter inflation likely eased slightly
  • A weaker currency and surging oil prices are expected to accelerate inflation
  • The data builds the case for rate hikes

Sources (original reporting)

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