NZ CPI comes in lower than expected. Next week we get AUD CPI … any correlation?

This'll be a topic … now that NZ CPI for Q1 has come in at lower than expected and quite weak

• And increases the potential for an RBNZ rate cut in May

Does this mean the Australian CPI will do the same

• and thus increases the potential for an RBA rate cut in May?

Gonna go out on a limb here and say any correlation between NZ CPI and Oz CPI is tenuous (if it all). Having said that, on any one trial anything can happen.

But, it'll be a topic for sure.

Aussie CPI is due on April 27.

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NZ data:

• New Zealand Q1 CPI : 0.1% q/q (expected 0.3% and 1.5% y/y (expected 1.7%)

And NZD drop:

• Substantial drop for the NZD on CPI data coming in much lower than expected