New Zealand Inflation Slows to 1.6% YoY in Q4


Consumer prices in New Zealand increased 1.6 percent year-on-year in the fourth quarter of 2017, below market expectations of 1.9 percent and 1.9 percent in the previous period. It was the lowest quarterly inflation in a year.

Lower inflation was mainly explained by the groups of food (2.3 percent in Q4 vs 2.8 percent in Q3), with grocery food prices up 2.5 percent, and restaurant meals and ready-to-eat food up 2.3 percent; transport (1.5 percent vs 2 percent); liquor & tobacco (4.2 percent vs 4.5 percent), clothing & footwear (-1.7 percent vs 0.5 percent), health (1.0 percent vs 2.0 percent), transport (1.5 percent vs 2.0 percent), recreation & culture (-1.1 percent vs -1.0 percent); and communication (-5.6 percent vs -5.3 percent), with telecommunication services prices fell 6.3 percent, explained by better-value data plans.

In contrast, education prices went up 2.4 percent after rising 2.2 percent in the previous three months. Meantime, housing and household utilities increased 3.0 percent, the same as in th previous period with construction up 5.3 percent, and rentals for housing up 2.3 percent.

On a quarterly basis, consumer prices rose by 0.1 percent following a 0.5 percent increase in the previous quarter.

New Zealand Inflation Slows to 1.6% YoY in Q4


Mario | mario@tradingeconomics.com
1/25/2018 11:35:31 AM