The post NZ two-year inflation expectations rise to 2.29% QoQ in Q2 2025 appeared on BitcoinEthereumNews.com.

New Zealand’s (NZ) inflation expectations accelerated on a 12-month and a two-year time frame for the second quarter of 2025, the Reserve Bank of New Zealand’s (RBNZ) latest monetary conditions survey showed on Friday. Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, rose to 2.29% in Q2 2025 from 2.06% seen in Q1. NZ average one-year inflation expectations increased to 2.41% in Q2 vs. 2.15 % in the first quarter.  NZD/USD reaction to inflation expectations At press time, NZD/USD is closing in on 0.5900 following the data, up 0.35% on the day. (The title was corrected on May 16 at 3:20 GMT to say that “NZ two-year inflation expectations rise to 2.29% QoQ in Q2 2025,” not Q1.) Inflation FAQs Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%. The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls. Although it may…

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Filed under: News - @ May 16, 2025 3:21 am