NZ: CPI rose 0.9% in Sep quarter – Westpac

Michael Gordon, Senior Economist at Westpac, notes that the New Zealand’s Consumer Price Index (CPI) rose by 0.9% in the September quarter, beating market and Reserve Bank forecasts.

Key Quotes

“A sharp rise in fuel prices accounted for some of the rise, and is likely to push annual inflation above 2% next quarter.”

“The Reserve Bank will be keen to point out the temporary nature of this shock. But this is not the full story.”

“Combined with other recent developments, we think that the odds of an OCR cut in the next year are reducing.”