NZ inflation expectations lowest on record; house price seen -5% in a year.

By Sophia Rodrigues

New Zealand inflation expectations fell to the lowest on record, with one-year consumer price index inflation at 0.74% in the Q2 RBNZ survey compared with 1.88% in Q1. Two-year inflation expectations fell to 1.24% from 1.93% in Q1. 
10-year inflation expectations was unchanged at 1.96% while 5-year expectations fell to 1.80% from 1.97%.

The survey showed house price expectations is for a 5.5% fall in one year, but a rebound the next year with a 3.2% rise.

The unemployment rate is expected to rise to 9.4% one-year out but improve marginally to 7.1% after two years.