RTTNews - Consumer price inflation expectations for both one and two year horizons dropped in New Zealand, according to Reserve Bank of New Zealand's Survey of Expectations released on Tuesday.

The quarterly survey found that average one-year-ahead inflation expectations stood at 1.8%, down 0.4 percentage points since the March quarter survey. Meanwhile, two-year-ahead expectations came in at 2.2%, compared with the previous figure of 2.3%.

The Nielsen Company conducts the survey on behalf of RBNZ. The survey was carried out on May 13 and 14.

The net percentage of respondents who assessed monetary conditions were tighter than neutral was 9%. This compares with a net 7% in the March 2009 quarter survey. By September this year, a net 3% of respondents expect conditions to become easier than neutral, and by March 2010 the figure to shift slightly to 6%.

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