The NZ CPI for July - September quarter, data is here from earlier: New Zealand Q3 CPI 0.5% q/q (expected 0.4%)
Responses are coming in, this via Westpac (in brief):
The result was stronger than the 0.2% rise that the Reserve Bank forecast in its August Monetary Policy Statement.
- However, most of the difference was on the tradables side, which includes relatively volatile items such as food and fuel prices.
- For now, inflation sits comfortably in line with the Reserve Bank's target.
- However, there is little that suggests a risk of inflation breaking higher, particularly with the New Zealand economy seemingly entering a slower growth phase.
... The disinflationary impact of the strong New Zealand dollar is waning, although the effects on import prices were mixed.
Non-tradables prices rose 0.7% for the quarter, a little stronger than we and the RBNZ expected.
- Looking at the details suggests that the surprise wasn't widespread, with an element of government charges driving the move higher.
The annual inflation rate rose from 1.7% to 1.9%.
- A range of core inflation measures all told a similar story, with the annual rate either holding steady or ticking slightly higher, and sitting within a range of 1.7% to 2.0%.
--
NZD has quietened down around 0.7190. We continue to await political developments (election update here from earlier today)
