New Zealand first-quarter inflation was in line with expectations as higher prices for cigarettes and tobacco were offset by cheaper tertiary education costs. The consumers price index rose 0.5 per cent in the three months to March 31, while annual inflation was 1.1 per cent, Statistics New Zealand said. The result was exactly in line with the median of 12 economists surveyed by Bloomberg and compares to the Reserve Bank's quarterly projection of 0.6 per cent and 1.1 per cent. The Reserve Bank is mandated with keeping annual inflation between one and three per cent over the medium term with a focus on the mid-point. ... (full story)