New Zealand Inflation

New Zealand

New Zealand: Inflation slows down to a multi-year low in Q1

April 20, 2015

Consumer prices dropped 0.3% over the previous quarter in Q1 2015, coming in below the 0.2% decrease recorded in Q4 2014. The reading came in below market expectations of a 0.2% decrease. According to the statistical institute, the print mainly reflected that lower prices for petrol and international travel more than offset higher prices for cigarettes and tobacco and for fruits.

Headline inflation fell from 0.8% in Q4 2014 to 0.1% in Q1 2015, reaching a multi-year low. Consequently, inflation fell further below the lower bound of the Reserve Bank of New Zealand’s 1.0%–3.0% target range.

According to its March Monetary Policy Statement, the Bank expects an average inflation of 0.0% in 2015. In 2016, the Bank sees inflation averaging 1.3%. FocusEconomics Consensus Forecast panelists expect inflation to average 1.1% in 2015, which is unchanged from last month’s forecast. For 2016, the panel foresees that inflation will rise to 2.0%.


Author:, Economist

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New Zealand Inflation Chart


New Zealand Inflation Q1 2015

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


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