New Zealand Inflation Rate Climbs in Q2

Consumer prices in New Zealand increased 1.5 percent year-on-year in the second quarter of 2018 following a 1.1 percent increase in the previous quarter. The print came slightly below consensus (1.6 percent) and was the second slowest inflation rate in the last six quarters.
Mario | mario@tradingeconomics.com 7/17/2018 12:37:06 PM
Higher inflation was mainly explained by prices of food (0.7 percent compared to 0.6 percent); transport (2 percent compared to 0.5 percent); miscellaneous goods and services (3.1 percent compared to 2.5 percent); and alcoholic beverages and tobacco (5.6 percent compared to 4.5 percent). Meantime, prices for housing and household utilities remained increasing at a 3.1 percent pace.

In contrast, prices for household contents and services declined for the fourth straight quarter (-0.1 percent vs -1.0 percent in Q1) while clothing & footwear costs (-0.7 percent vs -1.4 percent) were down for the third consecutive period. In addition, prices for communication declined at a faster pace of 4.9 percent compared to 4.7 percent in the previous quarter, while education costs decreased 5.2 percent (vs -5.1 percent). 

On a quarterly basis, consumer prices rose 0.4 percent in the second quarter of 2018, slightly down from a 0.5 percent increase recorded in the previous period and also below market expectations of 0.5 percent. 

New Zealand Inflation Rate Climbs in Q2