New Zealand Inflation Q2 2020

New Zealand

New Zealand: Inflation falls back in Q2 amid coronavirus blow

July 16, 2020

Consumer prices fell at a four-and-a-half-year sharp rate of 0.48% in Q2 2020 over the previous quarter amid economic havoc wreaked by the Covid-19 pandemic, swinging from Q1’s 0.77% rise. In terms of specific categories, private transport supplies and services, accommodation services and passenger transport services recorded quarter-on-quarter declines in prices. On the other hand, prices for fruit and vegetables, restaurant meals and ready-to-eat food increased.

Meanwhile, inflation dived from an over eight-year high of 2.5% in Q1 to 1.5% in Q2, moving below the Central Bank’s 2.0% target.

FocusEconomics panelists expect inflation to average 2.0% in 2020, which is unchanged from last month’s forecast, and 2% again in 2021.

Author: Massimo Bassetti, Senior Economist

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New Zealand Inflation Chart

New Zealand Inflation Q2  20 20

Note: Quarter-on-quarter and annual variation of consumer price index in %.
Source: Statistics New Zealand and FocusEconomics calculations.

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