New Zealand Q3 Inflation Slows to 3.7% as Markets Price 98% Odds of Rate Hike
Updated
Updated · Reuters · Oct 22
New Zealand Q3 Inflation Slows to 3.7% as Markets Price 98% Odds of Rate Hike
3 articles · Updated · Reuters · Oct 22
Summary
New Zealand’s annual inflation eased to 3.7% in the third quarter from 4.1%, undershooting both economists’ 3.8% forecast and the central bank’s 3.9% projection.
The quarterly CPI rose 0.7%, below the 0.8% Reuters poll estimate, with petrol and house-building costs the biggest contributors even after fuel prices cooled from the June quarter.
Markets still see a 98% chance the Reserve Bank of New Zealand raises rates next week, and fully price in 50 basis points of tightening by the end of February; the New Zealand dollar slipped to $0.5692.
Inflation remains above the RBNZ’s 1% to 3% target band and is expected to reaccelerate in the fourth quarter as fuel prices rise again, keeping price pressures central to the Nov. 7 election and the broader stagflation risk.