Institution: New Zealand's inflation outlook is worrying the Reserve Bank of New Zealand

Golden Ten Data reported on April 21 that Mark Smith, Senior Economist at New Zealand’s ASB Bank, stated that New Zealand’s overall annual inflation rate is expected to reach 4.5% in the second quarter and remain above 4% for the rest of 2026. He noted that the first quarter’s CPI data only reflected the initial impact of the US-Iran war, while the significant rise in oil and transport prices is expected to spread to broader overall price increases. Smith warned that the Reserve Bank of New Zealand’s 1%-3% inflation target may not be achieved until mid-2027, and there is a risk of a more significant overshoot.