NZ: Recent volatility in fuel prices to have little bearing on Q4 CPI – Westpac

Analysts at Westpac present a brief preview of New Zealand’s Q4 2018 CPI report due later on Tuesday at 2145 GMT.

Key Quotes:

“The recent volatility in fuel prices will end up having little bearing on the December quarter figures, with the average price over the quarter close to unchanged. 

While we expect headline inflation to come in a little below the Reserve Bank's November MPS forecast, that's entirely due to the subsequent drop in fuel prices. In contrast, we think underlying inflation will be stronger than the RBNZ's forecast, reflecting the tightening labor market and the lower New Zealand dollar.”