Photo: RNZ / Samuel RillstoneThe Reserve Bank governor is warning of higher inflation and weaker economic growth due to the Middle East crisis. "We are likely to see higher headline inflation over the near term, and somewhat weaker growth momentum," Breman said. "For this type of disruption, we would likely see higher inflation over the next few quarters, along with squeezed real incomes and demand." She said the peak impact of monetary policy on inflation took about six to nine quarters. Higher fertiliser prices were another factor, and she believed it could take up to nine months to fully pass through to supermarket prices.

Source: Otago Daily Times March 24, 2026 09:44 UTC