New Zealand: Inflation rises in Q1
April 18, 2016
A renewed fall in oil prices at the beginning of the year offset inflationary pressures coming from a weakening New Zealand dollar. In Q1, consumer prices rebounded and rose 0.2% over the previous quarter, which contrasted the 0.5% decline registered in Q4. Q1’s result overshot the 0.1% rise the markets had expected and, according to Statistics New Zealand, the quarterly increase reflected higher prices for food and housing-related goods. That said, gas prices at the pump fell significantly in the first quarter.
Owing to the quarterly increase, headline inflation rose from 0.1% in Q4 2015 to 0.4% in Q1 2016. Despite the increase, inflation remains well below the Reserve Bank of New Zealand’s 1.0%-3.0% inflation target range. Annual average inflation remain unchanged in Q1at Q4’s 0.3%.