RBNZ data - One year ahead CPI Inflation expectations rose to a 31-year high of 4.40%

Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations survey from the RBNZ

• One year ahead inflation expectations had a mean of 4.4% which is up from 3.70% last quarter. This is the highest one year ahead inflation figure since the November 1990 value of 5.9%.
• The mean for two year ahead expectations rose to 3.27% which represents a 31 percentage point increase from last quarter’s value of 2.96% and the highest value since 1991.

• five year ahead inflation expectations increased from 2.17% to 2.30%. As with last quarter this is again the highest reported figure since 5 year inflation expectations were added to the survey in August 2017.
• Ten year ahead inflation expectations rose slightly to 2.12%, up 25 percentage points from last quarter.

The 5 and 10 year rises are a little under what was feared. The RBNZ band is 1-3%, both are under the mid-point of it.