CPI tipped to be flat

Wellington: Economists expect the December quarter consumer price index to be flat or up slightly on the September quarter, in a range of 0.0%0.3%.

Annual inflation is expected to be in a range of 1.0%1.4%, which is well below the midpoint of the Reserve Bank’s 1.0%3.0% target range.

Westpac Bank economist Michael Gordon, whose inflation forecast is at the low end of the range, said the December quarter CPI was typically soft, mainly due to lower prices for fresh fruit and vegetables.

The absence of peak season international travel had put further downward pressure on inflation, although much of that was expected to be offset by a big rise in housingrelated costs, he said. — RNZ