The labour market and economy will be bigger predictors
by New Zealand Adviser
NZ Adviser
Inflation remains steady in New Zealand, according to Wednesday’s consumer price index. The results are another indicator of what’s to come as the nation continues to battle conflicting market pressures.
Wednesday’s report revealed that the CPI rose 0.5% for the quarter, or 2.2% for the 12 months ending December 2024, in line with what market participants were expecting.
Kelly Eckhold, Westpac’s chief economist NZ, told New Zealand Adviser, that the market’s reaction to the report is “basically neutral.”
“It wasn’t a surprise,” he said. “It just confirms that inflation isn’t really the biggest driver of the Reserve Bank and interest rate policy right now. What’s going to be more important are what trends in the labour market and general economy as we go through the first half of the year.”