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ANZ analysts are expecting New Zealand’s headline CPI to surge 0.6% in the June quarter, with annual inflation ticking up from 1.5% to 1.7%.

Key Quotes

“Tradable inflation is expected to print at 0.8% q/q, supported by higher fuel prices, with non-tradable inflation rising 0.3% q/q. Core inflation measures should continue to track broadly sideways.”

“The Q2 inflation print should add to the case that inflation pressures have stalled and more is needed from the RBNZ to support the economy and get inflation back to 2%. The non-tradable (domestic) inflation print and core inflation measures will be crucial for the RBNZ, following several quarters of stability in the core measures. We’re expecting Q2 will mark the peak in annual non-tradable inflation for now.”