NZ Consumer Price Index for the first quarter (January - March) 2021

CPI 0.8% q/q

  • expected 0.8% q/q, prior 0.5%

CPI 1.5% y/y

  • expected 1.5% y/y, prior 1.4%

'Tradeables' inflation +0.9% and +0.5% y/y

  • 'non-tradeables' +0.7% q/q, +2.1% y/y (this is referred to often as 'domestic' inflation, stuff that cannot be internationally traded - a haircut is an oft used example)

RBNZ forecasts show the Bank is expecting inflation to move into the upper half of its 2-3% target band during this year and then to slow in 2022. The Bank says it believes higher inflation this year is, you guessed it, temporary only and monetary policy stimulus will remain in place. Q1 inflation has indeed accelerated from Q4 2020, so far so good for RBNZ projections.


For some background:

And, still to come is the RBNZ's own preferred measure of core inflation, due at 0300GMT today.

  • The Reserve Bank of New Zealand 's 'Sectoral Factor Model Inflation Gauge'