If supply-side factors are the major cause and oil prices remain around USD 50 per barrel, the cost of New Zealand’s annual petroleum imports would fall by about NZD 2.3 billion or 1 percent of nominal GDP compared with the price in mid-2014. It would represent a significant boost to household disposable income of around $ per annum per household.
We started with eleven, then twelve, then 13, then 15, and so we clearly have the same definition of price stability in the medium term, which is less than 2%, close to 2% at the level of euro area as a whole.