New Zealand Inflation Slows to Lowest Rate Since Early 2021

I would first like to pay respect to the traditional and original owners of this land, the Gadigal people of the Eora Nation, to pay respect to those who have passed before us and to acknowledge today’s custodians of this land. I also extend that respect to any First Nations people joining us here today. A low and stable inflation rate is critical to preserving macroeconomic stability. Having a good idea of what’s going to happen to prices allows businesses to plan for investment and expansion. It also makes things like budgeting and financial planning easier for households. This is particularly true for those on low incomes, who typically have smaller financial buffers than others and spend more of their income on essentials.[1] And with more stable household and business balance sheets, the financial system is more stable.[2] The experience of the last few years has clearly highlighted this. Everyone across the economy has felt the increased cost of living.[3] This is very clear in the data we monitor, such as household spending, but it’s perhaps more apparent in survey metrics such as consumer confidence, which remains much lower than its pre-pandemic average (Graph 1). So there are a number of good reasons to bring inflation down and keep it at a low and stable rate. post: RBA ASSISTANT GOV HUNTER: INFLATION EXPECTATIONS REMAIN ANCHORED