New Zealand’s inflation hits 30-year high
Labour shortages also affecting many businesses
New Zealand’s Consumer Price Index reached 6.9% in the first quarter of 2022 – a 30-year high, central bank figures show. CPI inflation was 7.6% in Q2, 1990.
The central bank targets an annual CPI increase of 1–3% over the medium term, to maintain a 2% average.
The Reserve Bank of New Zealand raised interest rates by 50 basis points to 1.50% last week, in its fourth increase in a row, and by the most in more than 20 years. The monetary policy committee adopted a “path of least regret”
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