Inflation figures in New Zealand may decline to 10-year low with the Bloomberg survey forecasting Consumer Price Index to remain at 0.8 per cent for the September quarter.

Thus, annual inflation rate may decline 1.2 per cent which is close to the Reserve Bank's target band of 1 to 3 per cent.

CPI was at its peak of 5.1 per cent in September 2008 which declined to 1.9 per cent in the June quarter of current financial year. Westpac economist Doug Steel said that inflation may rise in coming weeks due to seasonal increase in vegetable prices and hike in oil prices which is directly connected to surge in transportation charges.
Additional ACC levy on car registration may also push inflation rate in the coming quarters.

Inflation is likely to be impacted by international prices and the exchange rate. Steel forecasted non-tradeable inflation at 0.7 per cent in the quarter with the probability to decline 3 per cent on annual basis.

Deutsche Bank Chief Economist Darren Gibbs hoped CPI to rise just 0.1 per cent in December quarter which may push annual inflation rate to 1.8 per cent.