Reserve Bank of New Zealand survey shows two-year inflation expectations fall to 2.34%, nearing the central bank’s 2% target.
New Zealand’s two-year inflation expectations declined to 2.34% in Q3 2026, down from 2.53% in the previous quarter, according to a central bank survey. The figure reflects market views on inflation over the period when monetary policy adjustments typically take effect.
One-year inflation expectations stood at 2.6%, slightly above the two-year outlook. The RBNZ targets a 2% inflation rate, with core inflation excluding volatile items like food and fuel serving as the primary focus for policy decisions.
The cooling expectations may signal reduced pressure for further interest rate hikes, though the central bank remains vigilant on price stability.