20 Mar 2012

GDP pick-up could pressure inflation

8:20 am on 20 March 2012

An economist warns a major pick-up in Gross Domestic Profit this year could put pressure on inflation.

Two BNZ-Business NZ Performance indexes within the past fortnight have shown growth in the services and manufacturing sectors.

The services index rose nearly 2 points to 55.5 in February, while manufacturing grew to 57.7 up from 50.8 in January.

A reading above 50 means the sector is expanding.

BNZ senior economist Craig Ebert says if these two indexes continue rise, it could put pressure on supply and inflation.