New Zealand fourth-quarter inflation at 2.2%

The annual rate was slightly higher than a forecast from both economists and the central bank. — Reuters

WELLINGTON: New Zealand says inflation in the fourth quarter was at an annual rate of 2.2%, comfortably within the central bank’s target range of 1% to 3% for the second consecutive quarter, leaving the door open for further rate cuts.

Inflation rose 0.5% in the fourth quarter from the prior quarter, in line with analysts’ forecasts, according to data released by Statistics New Zealand yesterday. This compares with a 0.6% rise in the previous quarter.