Long-term inflation expectations for New Zealand businesses rose in the fourth quarter, a sign central bank policy was having its desired effect. Inflation expectations tracked by the central bank’s two-year ahead measure rose 1.9% in October-December, the Reserve Bank of New Zealand (RBNZ) said in a report on Tuesday. Consumer prices in New Zealand rose at an annualized 1.3% in the fourth quarter, up sharply from 0.4% in each of the previous three quarters. The gain was the biggest since the third quarter of 2014, when inflation was 1.6% year-over-year. Inflation was driven up by higher transport costs, rising ... (full story)