18 Jul '11, 2am

a 21 year high for NZ, and yet that's only 1/4th of Vietnam's rate last yr - New Zealand inflation rate at 21-year high

a 21 year high for NZ, and yet that's only 1/4th of Vietnam's rate last yr - New Zealand inflation rate at 21-year high

WELLINGTON: New Zealand's inflation rate hit a 21-year high in the 12 months to June, as rising fuel and food prices pushed up the cost of living, official data released Monday showed. Statistics New Zealand said consumer prices increased 1.0 per cent in the April-June quarter, taking the annual inflation rate to 5.3 per cent, the highest since the June quarter in 1990. The quarterly figure exceeded market forecasts of an 0.8 point increase, sending the New Zealand dollar up 0.3 US cents to 84.48 US cents amid expectations the central bank will lift interest rates to combat inflation. "The stronger-than-expected increase for 2Q suggests inflation is not as benign as the RBNZ (Reserve bank of New Zealand) would like," ASB Bank economist Christina Leung said in a note to clients. The Reserve Bank, which lowered interest rates to 2.5 per cent to stimulate growth following the...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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