Inflation increased in the June quarter off the back of higher rents and petrol prices in line with Reserve Bank (RBNZ) and market expectations. The Consumer Price Index (CPI) rose to 0.6% from 0.1% in the March quarter. Year-on-year, it increased to 1.7% from 1.5%. This undershot the 2% mid-point of the RBNZ’s inflation target, supporting its intention to cut the Official Cash Rate (OCR) again to stimulate the economy. The question remains whether an August cut to 1.25%, as widely anticipated by bank economists, will create enough stimulus, or whether a further cut in November (as picked by ANZ and ASB economists) ... (full story)