China's Inflation: A Big Deal?

The New Zealand economy has been relatively resilient, but there are little signs that inflation there will accelerate going forward. We forecast CPI inflation to stay at 0.2% year over year in June, which is unchanged from May. While we expect PPI inflation, in mountain-womanced terms, the contraction is likely to ease marginally. This is mainly due to the sequential decline in prices across a wide range of domestic raw materials.