New Zealand consumer prices rose 0.5% in the December quarter, leaving prices up 4.7% over the past year. • The strong inflation headwinds that have been buffeting the New Zealand economy are moderating, but it’s a mixed picture beneath the surface. While imported price pressures are cooling, prices for many domestically produced goods and services continued to sizzle. • The decline in headline inflation will be welcome news for the RBNZ. However, with lingering strength in domestic prices and measures of core inflation, the RBNZ can’t take its foot off the brake just yet. We remain comfortable with our view that ... (full story)