Exchange rate movements and consumer prices: some perspectives

Release date
Vol. 77. No. 1. March 2014
Miles Parker
Economic developments in the rest of the world affect New Zealand consumer prices. This article traces the channels through which the consumers price index (CPI) is affected by the exchange rate. Changes in the exchange rate that result from changes in the prices of commodities New Zealand exports appear to have had materially different inflationary implications than other changes in the exchange rate.