Treasury has released numbers on the potential fallout for the New Zealand economy from the Iran war.

It estimates that under a worst‑case scenario — a conflict lasting until the end of the year with elevated oil prices — inflation would rise from 3.1 percent to 3.7 percent.

Finance Minister Nicola Willis says that number is too high - but is lower than Australia's current inflation - which is sitting at 3.8 percent. 

ASB Chief Economist Nick Tuffley told Ryan Bridge forecasting in this climate is difficult. 

He says other spikes in oil prices have led to higher inflation - but this will all depend on how long the conflict lasts. 

LISTEN ABOVE

Treasury has released numbers on the potential fallout for the New Zealand economy from the Iran war.
It estimates that under a worst‑case scenario — a conflict lasting until the end of the year with elevated oil prices — inflation would rise from 3.1 percent to 3.7 percent.
Finance Minister Nicola Willis says that number is too high - but is lower than Australia's current inflation - which is sitting at 3.8 percent.&nbsp;
ASB Chief Economist Nick Tuffley told Ryan Bridge forecasting in this climate is difficult.&nbsp;
He says other spikes in oil prices have led to higher inflation - but this will all depend on how long the conflict lasts.&nbsp;
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

Early Edition with Ryan Bridge

Nick Tuffley: ASB Chief Economist on worst case scenario for NZ economy from Iran War

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/db58740d-c661-4573-a990-b40f011cd67c/transcript