"The increase in headline inflation in the March quarter was mainly due to higher tradables inflation, particularly petrol and food prices," Wheeler said in a statement. "These effects are temporary and may lead to some variability in headline inflation." Wheeler again said long-term inflation expectations were anchored around 2 percent and that while non-tradable and wage inflation is "moderate", both are expected to "increase gradually". Government figures this month showed the country's terms of trade are at a 44-year high." A lower New Zealand dollar would help rebalance the growth outlook towards the tradables sector," Wheeler said.

Source: Otago Daily Times June 21, 2017 21:33 UTC