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
Q1 CPI came in below both the RBNZ and market expectations. The q/q was 1.2%, versus 1.5% market consensus (RBNZ at 1.8%), while the y/y was 6.7% (6.9% market consensus, RBNZ 7.3%). Non-tradables inflation still rose 1.7% q/q, versus 1.5% in Q4, but this was also below the 2.0% expected from the RBNZ. In y/y terms non-tradables still firmed to 6.8% y/y (from 6.6% in Q4). Tradables was 0.7% q/q, versus 1.4% prior, bringing the y/y pace down to 6.4%.
- Whilst the RBNZ will take some comfort from the lower outcomes, relative to their own forecasts, non-tradable inflation in y/y terms is still at fresh record high, see the chart below.
- Looking at the detail, most of the move lower in the tradable component owed to transport, which moved down to 3.7% y/y from 8.4%, as petrol costs came down. Food prices were elevated at 11.3%, from 10.7% (up 3.7% q/q). This reflected broad increases across the sub-categories.
- Prices for building a new home eased back to 11% y/y from 14% y/y in Q4. The RBNZ may be mindful of renewed pressures in this sector as the cyclone rebuild gets underway.
Fig 1: NZ Non-Tradable Inflation Still Trending Higher in Y/Y Terms
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