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.
Author: Eric Denis , Economist