Imported prices have fallen, because the global economy has weakened and overseas inflation has dropped.
Domestic inflation is declining but remains higher than usual. This is because prices for services such as insurance, rents, and council rates are still rising faster than normal.
We expect inflation to remain within our target range.
There are fewer jobs being advertised.
Migration is adding less to New Zealand’s population. There are fewer new migrants coming to New Zealand, and more Kiwis are moving to Australia for job opportunities.
Pay rises are likely to be smaller than in recent years, reflecting lower inflation and the tougher job market.
Unemployment will come down next year as the economy starts to recover.
