New Zealand's annual inflation rate slowed to 3.7% in the third quarter from 4.1% previously, below both market expectations of 3.8% and the Reserve Bank of New Zealand's 3.9% forecast. The Consumer Price Index rose 0.7% from the second quarter, down from 1.5% and below the 0.8% estimate. Inflation nevertheless remained above the Reserve Bank's 1-3% target range, and markets were almost fully pricing in a quarter-point rate increase at next week's policy meeting. The New Zealand dollar edged up to $0.570, its strongest level in a month. Some economists expect price pressures to accelerate again in the fourth quarter as Middle East tensions raise fuel costs. The NZX 50 had earlier risen 38 points, or 0.3%, to 13,799 in Thursday morning trading.