RBNZ Survey: NZ two-year inflation expectations rise to 2.29% QoQ in Q2 2025

New Zealand’s (NZ) inflation expectations accelerated on a 12-month and a two-year time frame for the second quarter of 2025, the Reserve Bank of New Zealand’s (RBNZ) latest monetary conditions survey showed on Friday.

Two-year inflation expectations, seen as the time frame when RBNZ policy action will filter through to prices, rose to 2.29% in Q2 2025 from 2.06% seen in Q1.

NZ average one-year inflation expectations increased to 2.41% in Q2 vs. 2.15 % in the first quarter. 

NZD/USD reaction to inflation expectations

At press time, NZD/USD is closing in on 0.5900 following the data, up 0.35% on the day.

(The title was corrected on May 16 at 3:20 GMT to say that “NZ two-year inflation expectations rise to 2.29% QoQ in Q2 2025,” not Q1.)