NZ CPI: Running out of gas - ANZ
|ANZ analysts note that the New Zealand’s CPI increased 0.1% q/q, below ANZ and market expectations, with annual inflation declining to 1.5% y/y, from 1.9%.
Key Quotes
“Falling petrol and durables prices drove down tradable inflation (-1.3% q/q, -0.4% y/y), while non-tradable inflation rose a solid 1.1% q/q, as expected. Annual non-tradable inflation ticked up from 2.7% to 2.8% – the highest level in five years.”
“Today’s print for CPI inflation was slightly below the 0.2% q/q rise incorporated in the RBNZ’s February MPS. But the details of the print were broadly in line with their expectations, with volatility in tradable prices driving the RBNZ miss.”
“Looking forward, a lower NZD should start to feed more fully into tradable prices, and oil has already rallied 50% from the December low. This will result in a higher tradable inflation forecast in the May MPS, limiting any perceived risk of lower inflation expectations affecting pricing.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.