WELLINGTON: New Zealand's inflation rate hit a two and a half year high in the 12 months to March on the back of rising fuel, alcohol and tobacco prices, official data released Monday showed.
Statistics New Zealand said consumer prices increased 0.8 percent in the January March quarter, taking the annual inflation rate to 4.5 percent, the highest since September 2008.
Economists said the annual inflation rate, which fell just short of market expectations, was unlikely to prompt the Reserve Bank of New Zealand to change official interest rates from 2.5 percent.
First New Zealand economist Chris Green predicted rates would remain on hold until early next year.
"The market would now have greater comfort in the general expectation that they have the time to wait (to raise rates) until the March quarter of next year," he said.
Statistics New Zealand said petrol prices increased 17.1 percent in the year to March, with alcohol, cigarettes and tobacco up 11.4 percent.
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