(Releads, adding inflation expectations)
WELLINGTON, June 17 (Reuters) - Consumer confidence in New Zealand increased in June, beginning to recover after dipping the previous month, and expectations of higher inflation also rose, a survey showed on Friday.
The ANZ-Roy Morgan consumer confidence index edged up to 118.9 from 116.2 in the previous month. A reading above 100 shows optimism, while below that indicates pessimism.
Expectations for consumer price inflation over the next two years rose to 3.8 percent from 3.3 percent in the previous survey.
"The New Zealand economy is chugging along pretty well, despite clear strains in the dairy sector and the unease offshore," said ANZ chief economist Cameron Bagrie in a state
"The RBNZ is still talking about lower interest rates and the stronger NZD, while an issue for exporters, makes those larger consumer purchases or overseas travel more attractive," he said.
