New Zealand CPI inline with expectations, 0.6% Q/Q & 1.7% Y/Y

Consumer Price Index data has arrived and was expected to have risen by 0.6% quarter on quarter, (QoQ),1.7% year on year, (YoY), which would be in line with RBNZ forecasts, with much of the Q2 rise due to higher fuel prices.

The data has arrived as follows: 

• 0.6% vs 0.6% expected 0.1% and previous QoQ/ Q2.
• 1.7% vs 1.7% expected 1.5% and previous YoY/Q2.

About the Consumer Price Index

Consumer Price Index released by the Statistics New Zealand is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchasing power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.