New Zealand Inflation Expectations

Tomorrow morning at 4:00 am London time the Reserve Bank of Zealand ACFX will release its latest quarterly Inflation Expectations.
This report that is published around 21 days after the quarter ends is a measure of some 100 Business Managers expectation of future price growth for goods and services over the next two years.
Inflation expectations is an important measure of future economic conditions. The reason for this is inflation expectations could add upward pressure on prices as the labour force demands higher salaries so as to safeguard living standards.
May 2015 prior release of 1.9% was the first time in four reporting periods that those surveyed had indicated that they expect that inflation was going to increase.
If tomorrow’s report exceeds the prior release of 1.9% there is a possibility that the New Zealand Dollar appreciates in value as traders and investors would view a higher reading as inflationary and therefore, could act as a catalyst for future interest rate increases. http://www.acfx.net/new-zealand-inflation-expectations

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