New Zealand: Inflation climbs to a one-year high in Q3
October 16, 2018
Consumer prices rose 0.9% in Q3 over the previous quarter according to Statistics New Zealand, accelerating from Q2’s 0.4% rise and marking a one-and-a-half year high. The reading mainly reflected higher prices for housing and household utilities as well as transport.
Inflation picked up from 1.5% in Q2 to a one-year high of 1.9% in Q3, coming in marginally below the Central Bank’s 2.0% target. The combination of higher fuel prices and a weaker New Zealand dollar have added to inflationary pressures recently, which if sustained, could reduce the scope for further loosening of policy by the RBNZ.
New Zealand Inflation Forecast
FocusEconomics panelists expect inflation to average 2.0% in 2019, which is unchanged from last month’s forecast, and 2.0% again in 2020.
Author: Javier Colato, Economist