Inflation hits highest level in a decade

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Inflation has hit its highest level in a decade as consumer prices rose 2.2 per cent in the three months ended September, taking the annual rate to 4.9 per cent.

This was higher than the median of analysts' forecasts of a 1.4 per cent rise in consumer prices for the three months.

Current expectations are for the Reserve Bank to raise the official cash rate (OCR) again in November and then several rises next year to settle at around 1.5 per cent going into 2022.

The Bank lifted the OCR on 6 October, for the first time in seven years, by a quarter of a percentage point to 0.5 per cent.


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