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8 Jan 2015
New Zealand's deflation looms - BNZ
FXStreet (Bali) - According to BNZ, Global spare capacity, oil and the exchange rate will continue to drive New Zealand's prices lower.
Key Quotes
"By the end of the March quarter the level of prices, as measured by the Consumers Price Index, will almost certainly be lower than where it stood in the September quarter."
"We are now forecasting two consecutive quarters of price declines (December and March) with a cumulative drop of half a percent. Annual CPI inflation, as a consequence, falls to just 0.2% in the March quarter 2015. With petrol prices doing what they are, annual deflation is now a real possibility too."
Key Quotes
"By the end of the March quarter the level of prices, as measured by the Consumers Price Index, will almost certainly be lower than where it stood in the September quarter."
"We are now forecasting two consecutive quarters of price declines (December and March) with a cumulative drop of half a percent. Annual CPI inflation, as a consequence, falls to just 0.2% in the March quarter 2015. With petrol prices doing what they are, annual deflation is now a real possibility too."