New Zealand: Inflation picks up in Q2

Consumer prices rose 0.4% in Q2 over the previous quarter according to Statistics New Zealand, slightly below Q1’s 0.5% rise. The reading largely reflected higher prices for housing and household utilities and food, more than offsetting lower prices for communication and recreation and culture.

Inflation rose from 1.1% in Q1 to 1.5% in Q2 and moved closer to the midpoint of the Central Bank’s 1.0%–3.0% target range. The climb was mainly a result of higher prices for housing and household utilities, which increased 3.1% year-on-year, and alcoholic beverages and tobacco.

New Zealand Inflation Forecast

FocusEconomics panelists expect inflation to average 1.7% in 2018, which is unchanged from last month’s forecast, and 2.0% in 2019.