Rising commodity prices in New Zealand drive economic growth and inflation.
The study looked at how changes in commodity prices affect New Zealand's economy. When commodity prices go up, it's like there's more demand for goods and services. This leads to higher spending on things like buying stuff and investing in businesses. Businesses tend to invest more than people spend. Prices for things we can't trade, like services, go up, while prices for things we can trade, like goods, go down. The value of New Zealand's money goes up, and interest rates might go up in the long run.