Analysts at Westpac offer a brief preview of what to expect from New Zealand’s Q3 CPI report due later on Monday at 2145 GMT.
Key Quotes:
“We expect a 0.7% rise in consumer prices for the September quarter, taking annual inflation up to 1.7%.
Higher fuel prices account for much of the quarterly rise. We also expect the lower exchange rate over the last year to have an impact on the prices of imported goods.
Inflation is set to rise above the 2% midpoint of the Reserve Bank’s target range by year-end. A petrol-induced rise in inflation could make OCR cuts a harder sell in the near term, though it certainly wouldn’t preclude rate cuts if the economy faltered.”
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