NZ: Strong CPI data – Westpac

Michael Gordon, senior economist at Westpac, notes that New Zealand’s consumer prices rose by 0.7% in the September quarter, higher than forecast.

Key Quotes

“Annual inflation dipped to 1.5%, largely due to the variation in fuel prices.”

“Non-tradables inflation rose to an eight-year high, demonstrating that easy monetary policy settings in New Zealand are having the desired effect.”

“We continue to expect a further cut in the OCR to 0.75% in November, with rates remaining low for an extended period after that.”