Added: May 15, 2008
From: ofInterestNZ
Duration: 3:55
http://www.interest.co.nz/news Surprisingly high Producer Price Inflation data for the March quarter Higher electricity prices the major culprit Annual Producer Price input inflation up to 7.4% from 3.4% in December qtr Quarterly input inflation 2.3% vs economist forecast for 1.1% Annual output inflation 6.1% up from 4% Quarterly output inflation 1.8% vs economists forecasts for 1.3% Electricity input prices rose 41.7% from the previous quarter Electricity output prices rose 16.4% from the previous quarter Dairy output prices up 26.6% in a year What does this mean for interest rates and the exchange rates This news is bad news for the Reserve Bank In last week expectations of an early OCR cut have grown after weak Labour force and retail sales figures This is a spanner in the works Inflation above 3% for 7 of last 12 quarters Not a lot of wiggle room Most economists see Sept cut Maybe July or even June My pick is still December We have an inflation problem Has to be beaten with higher interest rates, reduced spending, more saving
Channel: News
Tags: analysis commentary commercial documentary gotcha! grassroots news outreach political
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