New Zealand: Inflation ends year below-target
January 22, 2019
According to Statistics New Zealand, consumer prices rose 0.1% in Q4 over the previous quarter, decelerating from Q3’s 0.9% increase. The weaker print reflected a fall in the price for food, alcoholic beverages and tobacco, and household contents.
Inflation logged 1.9% in Q4, thus matching the third quarter’s print and remained marginally below the Central Bank’s 2.0% target. An analysis of subgroups shows that increased prices for food and health were offset by contractions in the price of clothing, communication and education. Additionally, a decline in fuel prices and a stronger New Zealand dollar at year-end also suppressed price pressures.