Economists are questioning Treasury's 'worst case' economic forecast from the Iran war.

It predicts a worst case scenario of inflation hitting 3.7 percent this year - if the conflict persists.

Independent economist Cameron Bagrie says he doesn't think Treasury has properly taken into account businesses feeling the second-hand impact of rising fuel prices.

"If they've got a reason to push up prices under the guise of what's going on in Hormuz around the globe, firms are going to use that excuse and try to jam in some price rises. We've seen it before."

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Economists are questioning Treasury's 'worst case' economic forecast from the Iran war.
It predicts a worst case scenario of inflation hitting 3.7 percent this year - if the conflict persists.
Independent economist Cameron Bagrie says he doesn't think Treasury has properly taken into account businesses feeling the second-hand impact of rising fuel prices.
"If they've got a reason to push up prices under the guise of what's going on in Hormuz around the globe, firms are going to use that excuse and try to jam in some price rises. We've seen it before."
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.

Heather du Plessis-Allan Drive

Cameron Bagrie: independent economist responds to Treasury's 'worst case' economic forecast

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/d453bb9b-2439-4972-90b3-b411007293f5/transcript