Ahead of today’s core inflation data which is due today at 0300 GMT, we have seen the release of the Consumer Price Index for the first quarter of the year arrive in line with expectations as follows:
CPI 0.8% QoQ vs the expected 0.8% QoQ and the previous 0.5%.
For the year, it arrived at 1.5% vs the prior 1.% and in line with expectations.
NZD/USD is unchanged on the data at 0.7174.
Description of the Consumer Price Index
Consumer Price Index released by the Statistics New Zealand is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services.
The purchase power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.