Inflation drops lower than predictions

Inflation fell to 5.6% in the September quarter far exceeding the drop most economists had forecast. It is down from 6% in the June quarter.

The RBNZ had forecast inflation to be at 6% in the September quarter.

Economists at ASB and ANZ had forecast a slight uptick in the September quarter to 6.1%. Westpac had forecast a 2% quarterly rise, for an annual rate of 5.9%.

ANZ and Westpac have also forecast another OCR hike next month, but that now seems unlikely.