Two-year inflation expectations in New Zealand, considered the timeframe through which policy action filters through to prices, eased to 1.80 percent in the fourth quarter of 2019 from 1.86 percent in the previous three-month period. The forecast for annual inflation averaged 1.66 percent over the coming year, down from 1.71 percent in the previous survey in August. Inflation Expectations in New Zealand averaged 2.54 percent from 1987 until 2019, reaching an all time high of 8.30 percent in the third quarter of 1987 and a record low of 1.60 percent in the second quarter of 1994. source: Reserve Bank of New Zealand
Inflation Expectations in New Zealand is expected to be 1.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Expectations in New Zealand to stand at 2.10 in 12 months time. In the long-term, the New Zealand Business 2-Year Inflation Expectations is projected to trend around 2.00 percent in 2020, according to our econometric models.