New Zealand: Inflation moderates in Q3
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%. The third quarter print overshot market expectations of a flat reading. According to Statistics New Zealand, the moderation reflected lower prices for transport, which more than offset price increases for household items and vegetables.
In Q3, inflation came in at 0.2% (Q2: 0.4% year-on-year). Inflation remains well below the Reserve Bank of New Zealand’s 1.0%-3.0% inflation target range. September’s result suggests that the Reserve Bank of New Zealand may cut the Official Cash Rate at the next policy meeting on 10 November.