NZD: Renewed rise in inflation not a problem – Commerzbank
|In New Zealand, a CPI indicator is published every month, but these monthly figures only cover the prices of around 44% of the basket of goods and services, Commerzbank's FX analyst Volkmar Baur notes.
RBNZ still seen cutting in May despite rising momentum
"The full set of inflation data is still only available once a quarter. And this morning the figures for Q1 were published. At 0.9% quarter-on-quarter, the rate of price increases was slightly higher than the median forecast of analysts. However, the annual rate rose only slightly from 2.2% to 2.5%, which is right in the middle of the RBNZ's target range."
"On a more positive note, the annual rate for services eased back to 4.2% (from 4.8% in the previous quarter), closer to the central bank's target. However, it must also be said that the annualised quarterly rates are above the central bank's target and that inflation momentum seems to have picked up recently."
"This should still give the central bank room to cut rates again at the end of May, as I expect. However, it must also be said that the six weeks until the next central bank meeting is quite a long time in the current international environment. As a result, the Kiwi has been trading very cautious this morning and has not shown much movement."
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.