Cameron Bagrie, Chief Economist at ANZ, suggests that their NZ monthly inflation gauge posted a 0.6% increase in January, slightly lower than is typical for this time of year. Key Quotes “Prices from the Gauge have risen 0.5% in the last three months. Stripping out the January increase in tobacco prices left a 0.1% monthly increase (+0.4% 3m/3m). Prices in the Underlying Ex-housing Gauge rose 0.1% in January (+0.2% 3m/3m). Core inflation remains low in aggregate and we believe structural factors are partly at play. However, some evidence of capacity pressures filtering into inflation needs to be acknowledged and watched.” For more information, read our latest forex news.