Analysts at TD Securities note that the New Zealand’s headline CPI rose 0.6%/q to be 1.7%/yr in line with market and RBNZ forecasts.
“This outcome should do little to alter expectations for the Bank to cut next month following a series of poor PSIs and PMIs that suggest NZ will get sub 2% growth. In terms of details, the 5.8%/q rise in fuel prices led the increase in headline inflation and rents rose +1%/q, the fastest pace since 2008.”
“Seasonal weakness in transport, audio, computing and telcos was as expected. Tradable prices rose 0.9%/q, 0.1%/y and non tradable prices rose 0.3%/q, 2.8%/y. The RBNZ sectoral factor model, the Bank’s preferred measure was unchanged at 1.7%/y.”