19 Jan 2010

Flat CPI expected

9:43 pm on 19 January 2010

Economists expect inflation to remain flat in the fourth quarter. The Consumer Price Index, CPI, which measures the cost of living, is published tomorrow.

A jump of 1.3% in the previous quarter surprised economists. Most expect it to remain flat this quarter, as food and fuel prices continued to ease.

ASB economist Chris Tennant-Brown is forecasting a small decline of 0.2% for the quarter, but a sharp rise in the next 18 months.