RBNZ Says Second-Round Price Pressures Remain Limited as Inflation Risks Persist

Wellington, 29 May 2026 – The Reserve Bank of New Zealand has yet to see strong evidence of second-round price pressures, even as policymakers remain alert to inflation risks from higher energy costs, global uncertainty and the ongoing impact of the Middle East conflict.

Assistant Governor Karen Silk said the central bank is watching closely for signs that higher imported and energy-related costs are spilling more broadly into wages, services and inflation expectations. For now, however, weak demand and spare capacity in the economy appear to be limiting the extent to which businesses can pass higher costs on to consumers.