NZ: Q2 CPI as good as it gets – ANZ

ANZ analysts note that New Zealand’s headline CPI increased 0.6% q/q in Q2, which saw annual inflation pick up to 1.7% y/y from 1.5%.

Key Quotes

“Strength was driven by tradable prices, up 0.9% q/q (0.1% y/y), which was boosted by petrol price strength and will be transitory. Outside of petrol prices, there was some broader strength in tradable prices, likely reflecting recent NZD weakness.”

“Non-tradable inflation rose 0.3% q/q, boosted by rents, insurance, and restaurant meals. Annual non-tradable inflation was flat at 2.8% – a respectable five-year high, but still short of the 3% or more needed to see headline inflation comfortably and sustainably at 2%.”

“Core inflation measures did tick up slightly, despite the reasonably subdued non-tradable inflation print. Underlying inflation continues to track just short of 2%, following strength early in 2018. Annual trimmed mean measures reversed last quarter’s tick down, to sit around 2% across various measures of trim. The weighted median also ticked up from 2.2 to 2.3% y/y, and inflation excluding food and energy increased from 1.5% to 1.7% y/y.”

“All up, it looks like Q2 CPI is as good as it will get for domestic inflation for some time.”

Articles You May Like

Magical MACD Divergence System Revealed by Forex Trader
NY Fed GDP Nowcast rises to 1.82% from 1.58% last week
GBP/USD still eyes a drop below 1.2000 – UOB
Crude Oil Prices Eye Monthly-High as US Delays China Tariffs
ស្វែងយល់អំពីឧបករណ៍និស្សន្ទ | Beginner Guide to Investing Forex Trading Cambodia

Leave a Reply

Your email address will not be published. Required fields are marked *