Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NEW ZEALAND
New Zealand's consumer price inflation accelerated to +7.3% Y/Y in the three months through end-June, data from StatsNZ showed. This marks the largest annual jump in prices since June 1990.
- The reading of annual inflation topped the +7.1% median estimate in a Bloomberg survey and matched the top end of the forecast range. It also printed above the +7.0% projection from the RBNZ's May MPS.
- StatsNZ flags that "the main driver for the 7.3% annual inflation to the June 2022 quarter was the housing and household utilities group, due to rising prices for construction and rentals for housing."
- "The next largest contributor to annual inflation was from the transport group, due to higher prices for petrol and diesel." Note that over the weekend the government announced an extension to the reductions of fuel excise tax, road use charges and public transport fares.
- Gauges of tradable (+8.7% Y/Y) and non-tradable (+6.3% Y/Y) inflation both lodged new all-time highs in data series going back to June 2000.
- The kiwi dollar has shown a limited reaction to the data, with NZD/USD popping higher to return to neutral levels. The response from NZGBs was more pronounced, with yields extending their opening gains. NZ 2-Year swaps edged higher but are yet to test their monthly highs printed last week.
- All eyes are on the RBNZ's sectoral factor model inflation, which will hit the wires at 15:00 NZST/04:00 BST.
Fig. 1: New Zealand CPI Y/Y (%) vs. Bloomberg Median Estimate
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok