Free Trial
NZD

Rangebound, ANZ Business Survey On Tap

USDCAD TECHS

Pierces Support

ASIA

Coming up in the Asia-Pac session on Friday

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: Food Cost Surge Underlines RBNZ Inflation Fears

MNI (PERTH)
MNI (Perth)

The Reserve Bank of New Zealand's concerns about high domestic food prices feeding into elevated inflation were underscored by the 8.3% y/y increase in the food price index to a 13-year high, driven by a 7.7% increase in grocery prices and a 16% increase in fruit and vegetable prices, according to StatsNZ data released Thursday. Seasonally adjusted food prices rose 0.9% m/m for a second month, extending the run of consecutive months of rising food prices to 18.

The RBNZ has warned it will continue to tighten policy "at pace" after it raised the Official Cash Rate by 50bp to 3.5% on Oct 5, highlighting sustained global pricing pressure in its post-meeting comments, stating that “food and energy prices are being particularly exacerbated by the war in Ukraine." The RBNZ is expected to hike rates by 50bp at its next meeting on Nov 23 (see MNI STATE OF PLAY: RBNZ Hikes 50bp, No Slowing Down In 2022).

The persistently high level of food inflation over recent months is expected to be reflected in the September quarter Consumer Price Index set to be released on Oct 18. The RBNZ's latest Monetary Policy Statement forecast an annual rate of inflation in the September quarter of 6.4%. A rise of 6.6% is expected by economists.

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
True
Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
True

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.