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Lower Headline, Solid Non-Tradeables, RBNZ Core Coming Up

NEW ZEALAND

Q2 headline CPI came in moderately lower than expected at 0.4% q/q with the annual rate easing to 3.3% from 4%. It is now approaching the top of the 1-3% RBNZ target. The RBNZ had forecast 0.6% q/q and 3.6% in May. The important domestically-driven non-tradeables is moderating but came in slightly higher than the RBNZ expected and is unlikely to be enough for them to ease at the August 14 meeting, which is likely to be when it chooses to communicate rather than move.

NZ CPI y/y%

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Q2 headline CPI came in moderately lower than expected at 0.4% q/q with the annual rate easing to 3.3% from 4%. It is now approaching the top of the 1-3% RBNZ target. The RBNZ had forecast 0.6% q/q and 3.6% in May. The important domestically-driven non-tradeables is moderating but came in slightly higher than the RBNZ expected and is unlikely to be enough for them to ease at the August 14 meeting, which is likely to be when it chooses to communicate rather than move.

NZ CPI y/y%

Keep reading...Show less