Rising commodity prices boost New Zealand economy, driving investment 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 in the economy. This leads to higher spending on things like goods and investments. Businesses tend to invest more when commodity prices rise. This can cause prices to go up for things that can't be easily traded, like services. On the other hand, prices for things that can be traded, like goods, tend to go down. The value of New Zealand's money also goes up, and interest rates might increase in the long run.