UP AND AWAY: RBNZ's own survey shows inflation expectations shooting up again

According to the latest survey the expectation in five years' time is that inflation will be on 2.44%, up from 2.33% in the survey three months ago. And now, with inflation expectations pushing higher, there’s a risk that the inflation cycle could be even more protracted. The last of those three data releases was not released before this survey was actually conducted, but the inflation figures most certainly were. In many respects this survey series can increasingly be viewed as a measure of the RBNZ's credibility in achieving its inflation target. Personally, I think these survey results - which will have a big influence on the RBNZ - make at least a 75-point rise a slam dunk.