Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ inflation expectations dwindle as shine taken off economy

NZ inflation expectations dwindle as shine taken off economic growth

By Jonathan Underhill

Aug. 19 (BusinessDesk) - New Zealand businesses see a tamer track for inflation over the next two years as they trim their expectations for economic growth, suggesting the central bank doesn't have to rush to raise interest rates again.

The consumers price index is seen rising at an annual 1.96 percent on a mean basis in the year ahead, down from the 2.08 percent rate seen three months ago, according to the Reserve Bank's survey of expectations. Two-year inflation expectations fell to 2.23 percent from 2.36 percent.

For the September quarter, CPI is seen rising 0.5 percent, down from 0.59 percent last quarter. Inflation is seen slowing to 0.36 percent in the fourth quarter of the year.

Businesses see less inflation in an economy that may not be growing as fast as expected. The one-year ahead expectation for gross domestic product was trimmed to 3.1 percent from 3.3 percent and two years out the annual pace is seen slowing to 2.7 percent from 2.9 percent.

The survey comes after the release of the Treasury's pre-election fiscal and economic update, which also points to a slower pace of growth. The Treasury cuts its forecast for GDP in the year ending March 31, 2015, to 3.8 percent from its 4 percent forecast in the May budget, citing weaker commodity prices and tamer inflation.

The RBNZ survey shows one-year-ahead expectations for hourly earnings growth fell to 2.6 percent from 2.9 percent, while the two-year series fell 0.3 percentage points to 2.8 percent. Unemployment one year ahead is seen at 5.5 percent, down 0.1 percentage point from the second quarter, while the two-year-ahead rate held at 5.3 percent.

The survey was conducted on August 6-7 and was of 83 business managers and professionals.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news