Abhijit Surya, a macroeconomist at KITU, said that the rise in price pressure in the New Zealand economy in the second quarter was not particularly widespread, and core inflation indicators still performed well. He added that there is therefore no good reason for the Bank of New Zealand to raise interest rates sharply. He said that the rise in overall indicators can almost entirely be attributed to tradable goods inflation, which jumped from 2.5% to a three-year high of 4.9%. He added that although the overall inflation data is poor, these figures will not give the Bank of New Zealand a sense of urgency to raise interest rates continuously.

Abhijit Surya, a macroeconomist at KITU, said that the rise in price pressure in the New Zealand economy in the second quarter was not particularly widespread, and core inflation indicators still performed well. He added that there is therefore no good reason for the Bank of New Zealand to raise interest rates sharply. He said that the rise in overall indicators can almost entirely be attributed to tradable goods inflation, which jumped from 2.5% to a three-year high of 4.9%. He added that although the overall inflation data is poor, these figures will not give the Bank of New Zealand a sense of urgency to raise interest rates continuously.