New Zealand's inflation expectations sank its lowest level in nearly fourteen years in the June quarter of 2013, a survey by the central bank showed Tuesday.
Two-year ahead expectations for year-on-year growth in the consumer price index fell to 2.06 percent from 2.17 percent projected in the March quarter. This was the lowest rate since the December quarter of 1999.
One-year ahead expectations fell 1.52 percent from 1.68 percent in the March quarter. The survey respondents expect monetary conditions to remain relatively easy over a two-year horizon. However, they forecast slightly higher interest rate over the period.
One and two-year year expectations of the unemployment rate have fallen by about 0.3 percentage points since the last survey, the central bank said in the report.
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