RBNZ Survey: NZ Two-Year Inflation Expectations Rise to 2.29% in Q2 2025

NZ Two-Year Inflation Expectations Rise to 2.29% in Q2 2025

New Zealand's two-year inflation expectations have increased to 2.29% in the second quarter of 2025, up from 2.06% in the first quarter, according to the latest monetary conditions survey from the Reserve Bank of New Zealand (RBNZ). This marks a notable rise in the longer-term outlook for inflation.

Additionally, one-year inflation expectations also saw an uptick, rising to 2.41% in Q2 from 2.15% in Q1, signaling a broader sense of inflationary pressures in the New Zealand economy.

Following the release of the data, the New Zealand Dollar (NZD) saw a positive reaction. The NZD/USD currency pair rose by 0.35%, moving closer to the 0.5900 level.

These shifts in inflation expectations suggest that market participants are anticipating some level of price pressure, which may influence the RBNZ's monetary policy decisions moving forward.