New Zealand: Inflation dips in Q3

inflation dipped to 7.2% in Q3 from 7.3% in Q2, which had marked the fastest print since Q2 1990. It therefore remained entrenched above the Central Bank’s 1.0%-3.0% target band. In terms of specific categories, somewhat softer increases in construction costs and local authority rates drove the reading.

Meanwhile, consumer prices soared 2.2% from the previous quarter in Q3, coming in above Q2’s 1.7% increase.

FocusEconomics panelists see inflation averaging 4.2% in 2023, which is up 0.3 percentage points from last month’s forecast, and 3.0% in 2024.