The dollar in your pocket is worth just as much as it was three months ago, even if it may not seem like it because of rising prices for basics such as food and rent.
Statistics NZ reported the consumer price index didn’t increase at all in the three months to June, bringing the annual inflation rate down from 2.2 per cent to 1.7 per cent.
Good. Low inflation helps families and also means interest rates should stay low for longer, which is huge for those with mortgages.
The Reserve Bank had forecast in May that today’s annual rate would come in at 2.1 per cent.
Even though the official range for targeting is 1% to 3%, I regard inflation of over 2% as too high so good to see it under 2%.