Economists expect the Reserve Bank will raise interest rates further late this month, despite lower than expected inflation figures.

New CPI figures show prices rose 0.3 per cent for the June 2010 quarter, meaning annual inflation is running at 1.8 per cent.

Stocks in Europe and the US fell after worse-than-expected US economic data bolstered concern about growth.

CPI stats due out today will be closely watched...

The NZ dollar peeked above US71c for the first time since late June as good economic data from the US and Australia restored faith in the global economic recovery.

The New Zealand dollar gained on a weakening greenback after comments from the Reserve Bank of Australia yesterday spurred traders' appetite for high-yielding currencies.

Stocks in the US fell overnight, erasing an early rally, on evidence of a slowdown in growth in the US services sector.

Stocks in Europe, Brazil and Canada fell, as did oil prices, amid increasing signs that economic growth was cooling globally.

Auckland house sales slumped 16pc in June, with the average sale price falling 3.6pc from a year ago, says real estate firm Barfoot & Thompson.

The boss of state-owned Kiwibank wants people to be compelled to join KiwiSaver, with individual contributions rising gradually over the next decade or two to reach 10 per cent of income.

House prices will fall gently for the next two years before levelling out, says a leading bank economist.

Equities slid overnight amid further signs of economic weakness in China, Europe and the US.

The kiwi dollar extended its decline to a three-week low as fears over America's recovery sapped investors' appetite for riskier assets.