New Zealand: Inflation slows down to one-and-a-half-year low in Q4
January 21, 2015
Consumer prices dropped 0.2% over the previous quarter in Q4 2014, coming in below the 0.3% price increase recorded in Q3. The reading came in below market expectations of a flat reading. According to the statistical institute, the print mainly reflected that lower prices for petrol and vegetables more than offset higher prices for international travel and housing-related items.
Annual headline inflation fell from 1.0% in Q3 to 0.8% in Q4, the lowest reading since Q2 2013. Consequently, inflation fell below the lower bound of the Reserve Bank of New Zealand’s 1.0%–3.0% target range.