New Zealand warns that if the war in Iran continues, inflation will "rise sharply".

New Zealand Finance Minister Willis said on Monday that if the conflict in the Middle East continues, inflation rates this year could "rise significantly" and remain above the central bank's target range. Willis pointed out that according to the latest models from the Treasury, in a scenario where the conflict lasts longer and supply chains are more severely disrupted, the peak inflation will be higher than previously expected. "They believe that inflation will rise significantly this year and remain above our target range," Willis told reporters. Data released in January in New Zealand showed that inflation in the fourth quarter was 3.1%, higher than the central bank's target range of 1% to 3%. With energy prices rising, the market is increasingly expecting monetary policy to tighten in the short term. Willis declined to disclose specific numbers, saying the Treasury has not yet determined the final scenario or baseline scenario.