Talk Money: April 19, 2016

Tony Field (Paul Henry)
Tony Field (Paul Henry)

It is looking a little less likely that the Reserve Bank will cut rates next week, following the release of the latest inflation numbers.

The Consumer Price Index rose just 0.2 percent in the first three months of the year.

Airfares were down 12 percent and petrol prices fell by 7 5 percent.

Tobacco and cigarette prices increased by 9.4 percent. That was largely thanks to 10 percent rise in excise duty. 

Fruit prices rose by 8.2 percent. However that was only a 1.6 percent increase if you allow for seasonal factors.

So the increase in the CPI was in line with the Reserve Bank's own expectations.

The markets have now slightly lowered the expectations of another rate, to odds of 50 - 50.

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