Most bank economists believe Stats NZ data out on Wednesday will show consumer inflation fell very slightly in the December quarter, from 7.2 per cent year-on-year in the September quarter. This will really concern the Reserve Bank, given it is domestic price pressures that it can influence. Indeed, economists see non-tradeable (domestic) inflation coming in stronger than tradeable (imported) inflation. Meanwhile, BNZ and Kiwibank economists believe it will opt for a 50-point lift. Kiwibank economists believe labour market conditions should loosen in the second half of this year, with the unemployment rate steadily rising.

Source: New Zealand Herald January 23, 2023 02:22 UTC