23 Aug 2011

Inflation expections down slightly

6:36 pm on 23 August 2011

The Reserve Bank's quarterly survey of expections shows business managers are forecasting annual inflation to average 2.84% over the next 12 months, compared with a figure of 3.12% in the previous survey in May.

Two-year inflation expectations eased from 3% to 2.86%.

ASB economist Jane Turner says the slight fall in inflation expectations should be of some comfort to the central bank, relieving some of the pressure on it to act sooner rather than later on rate rises.