New Zealand: Inflation jumps to 32-year high in Q2
Consumer prices soared 1.7% from the previous quarter in Q2, coming in slightly below Q1’s 1.8% jump. In terms of specific categories, higher prices for food, housing and household utilities and transport drove the reading.
Meanwhile, inflation surged to 7.3% in Q2 from 6.9% in Q1, logging the fastest print since Q2 1990 and moving further above the Central Bank’s 1.0%-3.0% target band.
Commenting on the release, Lee Sue Ann, economist at UOB, stated:
“This is the largest price movement since a 7.6% increase in the Jun 1990 quarter, that occurred shortly after the introduction of Reserve Bank of New Zealand Act 1989. […] Overall, headline inflation pressures remain narrowly based, largely due to higher oil and food prices as well as construction costs. […] The inflationary backdrop is very uncertain, with global inflationary pressures remaining intense.”