New Zealand inflation at 14-year low

New Zealand's annual inflation rate slipped to a 14-year low in the 12 months to June, official data showed on Tuesday, with cheaper telecoms bills helping contain the cost of living. Inflation was 0.2 percent in the April-June quarter, just below market expectations, bringing the on-year figure to 0.7 percent, Statistics New Zealand (SNZ) said. It was the lowest annual figure since 1999, coming in well below the Reserve Bank of New Zealand's 1.0-3.0 percent target band. The result means there is no pressure on the central bank to change its stated intention of maintaining interest rates at a record low of 2.5 percent until at least the end of the year, barring any major shocks. SNZ said increased housing costs were a key contributor to the annual inflation rise, partially offset by falls in the prices of telecoms services and audio-visual goods.