Westpac said that the New Zealand dollar declined after the inflation data fell short of expectations, but this decline is likely to be difficult to sustain, and consumer prices may accelerate again at the end of the year. Imre Spicer, the bank's Auckland strategist, said that although overall inflation fell slightly short of expectations, “the surprise level of this data is not enough to trigger large fluctuations in the New Zealand dollar; it will only have a slight negative impact.” The slowdown in inflation in the third quarter is likely to fall only briefly. By the end of the year, inflation will rise again to more than 4%, and will be higher than the Reserve Bank of New Zealand's current forecast for most of next year. “After the initial decline, the NZD/USD pair may restart the upward trend and move closer to the 0.57 to 0.575 range.”

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