In the second quarter, consumer prices rose 0.2% over the previous period, which was below the 0.4% increase observed in the first quarter. The reading undershot market expectations that had consumer prices rising 0.3%. According to Statistics New Zealand, the reading reflects higher prices for housing and household utilities, which were partially by offset lower prices for transport. As a result of the subdued quarterly increase, annual headline inflation fell from 0.9% in the first quarter to 0.7% in the second quarter, which marks the lowest level observed since the final quarter of 1999. Moreover, inflation remains well below the Central Bank's target of 2.0% plus/minus one percentage points. In its June inflation report, the Reserve Bank of New Zealand expects inflation to average 1.4% in the fiscal year 2013/14 (ending March 2014). For fiscal year 2014/15, the Bank anticipates inflation to average 1.9%. FocusEconomics Consensus Forecast panellists expect inflation to average 1.7% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel anticipates that inflation will rise to 2.3%.
New Zealand Inflation
Inflation falls to lowest level in over a decade
July 16, 2013
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New Zealand Inflation Chart
Note: Quarter-on-quarter and annual variation of consumer price index in %.
Source: Statistics New Zealand and FocusEconomics calculations.
New Zealand Economic News
October 19, 2016
In Q3, consumer prices edged down from the quarter-on-quarter seasonally-adjusted 0.4% increase observed in Q2 to 0.2%.
September 30, 2016
Economic sentiment among New Zealand businesses rebounded in September after declining for two consecutive months.
September 22, 2016
At its meeting held on 22 September, the Reserve Bank of New Zealand (RBNZ) decided to keep the Official Cash Rate (OCR) at 2.00%.
September 19, 2016
New Zealanders’ confidence rose in Q3 after having deteriorated in the previous two quarters.
September 15, 2016
GDP grew a seasonally-adjusted 0.9% over the previous quarter in Q2, which matched the result tallied in Q1.