NZ inflation gauge sees largest rise since June - ANZ

Dhwani Mehta FXStreet

Cameron Bagrie, Chief Economist at ANZ bank noted his afterthoughts on New Zealand’s monthly inflation gauge.

Key Quotes:

“Prices from the Gauge rose 0.3% in December1 and are up 2.3% y/y.”

“The largest contributions came from rents, purchase of housing and accommodation services.”

“We are starting to detect more broad-based gains with prices in six of the eight major groups increasing.”

“Nonetheless, inflation signals are showing signs of aligning with strength across the economy and diminishing capacity. “

“With momentum across the economy strong and spare capacity being absorbed, the inflation pulse is likely to beat a tad faster. With that comes the reality that the OCR will not stay this low indefinitely.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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