New Zealand Inflation Rate Climbs in Q2

Consumer prices in New Zealand increased 1.5 percent year-on-year in the second quarter of 2018 following a 1.1 percent increase in the previous quarter. The print came slightly below consensus (1.6 percent) and was the second slowest inflation rate in the last six quarters.

Higher inflation was mainly explained by prices of food (0.7 percent compared to 0.6 percent); transport (2 percent compared to 0.5 percent); miscellaneous goods and services (3.1 percent compared to 2.5 percent); and alcoholic beverages and tobacco (5.6 percent compared to 4.5 percent). Meantime, prices for housing and household utilities remained increasing at a 3.1 percent pace.

In contrast, prices for household contents and services declined for the fourth straight quarter (-0.1 percent vs -1.0 percent in Q1) while clothing & footwear costs (-0.7 percent vs -1.4 percent) were down for the third consecutive period. In addition, prices for communication declined at a faster pace of 4.9 percent compared to 4.7 percent in the previous quarter, while education costs decreased 5.2 percent (vs -5.1 percent). 

On a quarterly basis, consumer prices rose 0.4 percent in the second quarter of 2018, slightly down from a 0.5 percent increase recorded in the previous period and also below market expectations of 0.5 percent. 

New Zealand Inflation Rate Climbs in Q2

Mario |
7/17/2018 12:37:06 PM