Forex
Oil Prices Could Push Inflation Higher Than Forecast
The Reserve Bank Governor of New Zealand has warned that high oil prices could lead to higher inflation than previously forecast. Dr. Anna Breman stated that if recent increases in global oil prices persist, they would result in slightly higher near-term inflation.
The economy is showing signs of growth, with the GDP figures showing a 0.2 percent increase in the three months to June. However, the recovery is uneven, and high oil prices are a concern for the Bank.
Breman noted that the global price of oil has surged above US$100 a barrel, with pump prices in New Zealand hitting levels last seen in June. The current price of 91 unleaded on the Gaspy fuel monitoring site is $3.34 a litre.