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New Zealand Business Inflation Expectations Show Mixed Trends in Q2

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New Zealand businesses' annual inflation expectations rose for the short term but eased over the longer horizon, according to a survey published by the Reserve Bank of New Zealand on Thursday.

The one-year-ahead annual inflation expectations rose to 3.68% in the June quarter from 2.6% in the three months to March, while two-year-ahead expectations increased to 2.9% from 2.6%.

Inflation expectations over the next five years remained steady at 2.7%, while expectations over the next 10 years decreased to 2.9% from 3.2%.

Annual wage growth expectations over the next 12 months rose to 2.8% from 2.7%, while the two-year-ahead outlook decreased to 3.1% from 3.2%.

The expected year-ahead unemployment rate rose to 5.5% from 5.2%, while the two-year counterpart increased to 5.3% from 4.9%.

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