NEW ZEALAND
July monthly prices, which account for around 40% of the CPI basket, were mixed with most showing lower or steady inflation rates except food which picked up. Rental and petrol inflation also moderated. The data are a good start to Q3 and though food picked up, food inflation remains low. The RBNZ revised down its Q3 CPI expectations to 2.3% y/y.
- Food prices rose 0.4% m/m bringing the annual rate up to +0.6% y/y from -0.3% and ex fresh fruit & veg it eased to 2.0% y/y from 2.3%. Grocery inflation moderated in the month too.
- Petrol prices fell for the third straight month bringing the annual rate down to 0.6% y/y. Brent crude fell 0.2% m/m in June which was probably felt at the pump in July. July crude prices rose 1.4% m/m but eased to 4.9% y/y from 10.6%. They are lower in August to date.
- Annual rents are easing slightly with existing rents moderating to 4.3% y/y from 4.5%, while new rents fell for the third straight month, they were stable at 2.5% y/y.
- Accommodation services fell sharply on the month to be down 4.5% y/y after +1.1%, while domestic and international air transport saw continued annual deflation.
- Alcohol was steady at 3.7% y/y and tobacco at just over 10%.
NZ monthly CPI y/y%
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