New Zealand Inflation Accelerates More Than Expected to 2.5% (2)

New Zealand’s annual inflation accelerated for the first time in almost three years, while still remaining within the Reserve Bank’s target band, suggesting policymakers can press ahead with further easing to support the economy.

The Consumers Price Index rose 2.5% in the first quarter from a year earlier, quickening from 2.2% three months prior, government data showed Thursday. The RBNZ and economists’ expectation was for a 2.4% gain. Consumer prices advanced 0.9% from the fourth quarter, also exceeding estimates.

While inflation is edging away from the midpoint of the RBNZ’s 1-3% target, the central bank has scope to keep cutting ...