New Zealand saw a slowdown in inflation, the lowest rate since 2021

Posted on January 29, 2024   |  

New Zealand saw a slowdown in inflation, reaching its lowest rate in two and a half years.

The latest consumer price index (CPI) revealed a significant drop in inflation to 4.7% for the year 2023.

The main factors contributing to the inflation slowdown include reduced prices in food and transportation in New Zealand.

Despite remaining above the Reserve Bank's target band, the better-than-expected slowdown diminishes speculation of a further increase in the official cash rate.

The inflation rate aligns with market expectations but falls below the Reserve Bank's forecast of 5%.