New Zealand Inflation Outpaces Forecasts at Fresh 32-Year High
Matthew Brockett
Vehicles travel along a road in the Onehunga area of Auckland, New Zealand, on Monday, June 13, 2022. New Zealand's central bank is to begin selling the bonds acquired during its quantitative easing program back to the government, and intends to gradually dispose of all its holdings over the next five years. Photographer: Fiona Goodall/Bloomberg
(Bloomberg) -- New Zealand inflation accelerated more than economists expected in the second quarter to a fresh 32-year high.
Annual inflation quickened to 7.3% from 6.9% in the first quarter, government data showed Monday in Wellington. Economists forecast 7.1%. Consumer prices advanced 1.7% from three months earlier, exceeding the 1.5% median estimate.
Central banks around the world are rapidly raising interest rates to regain control of inflation, which is spiraling as demand outstrips supply amid pandemic bottlenecks and the war in Ukraine. New Zealand’s Reserve Bank last week delivered its third straight half percentage point increase, taking the Official Cash Rate to 2.5%, and said it will keep tightening policy “at pace.”
The New Zealand dollar rose after the release of the data. It bought 61.78 US cents at 11:30 a.m in Wellington, up from 61.53 cents beforehand.
Annual inflation is running at the fastest since the second quarter of 1990, when it reached 7.6%. The RBNZ targets the midpoint of a 1-3% range over the medium term.
In May, the central bank forecast inflation would peak at 7% this year then ease back to the top of its band by late 2023. However, last week it said there was “a near-term upside risk” to inflation.
Other Details
Prices for construction of new houses were up 4.5% for the quarter and 18% for the year
Gasoline prices rose 6.2% in the quarter and 32% for the year
Food prices gained 1.3% in the quarter and 6.5% for the year
Tradables prices increased 1.9% from the previous quarter and 8.7% for the year
Non-tradable prices rose 1.4% from the previous quarter and 6.3% from a year earlier
Consumer prices excluding food, fuel and energy rose 6.1% from a year earlier. The RBNZ publishes its own core inflation measure later Monday
Matthew Brockett
Vehicles travel along a road in the Onehunga area of Auckland, New Zealand, on Monday, June 13, 2022. New Zealand's central bank is to begin selling the bonds acquired during its quantitative easing program back to the government, and intends to gradually dispose of all its holdings over the next five years. Photographer: Fiona Goodall/Bloomberg
(Bloomberg) -- New Zealand inflation accelerated more than economists expected in the second quarter to a fresh 32-year high.
Annual inflation quickened to 7.3% from 6.9% in the first quarter, government data showed Monday in Wellington. Economists forecast 7.1%. Consumer prices advanced 1.7% from three months earlier, exceeding the 1.5% median estimate.
Central banks around the world are rapidly raising interest rates to regain control of inflation, which is spiraling as demand outstrips supply amid pandemic bottlenecks and the war in Ukraine. New Zealand’s Reserve Bank last week delivered its third straight half percentage point increase, taking the Official Cash Rate to 2.5%, and said it will keep tightening policy “at pace.”
The New Zealand dollar rose after the release of the data. It bought 61.78 US cents at 11:30 a.m in Wellington, up from 61.53 cents beforehand.
Annual inflation is running at the fastest since the second quarter of 1990, when it reached 7.6%. The RBNZ targets the midpoint of a 1-3% range over the medium term.
In May, the central bank forecast inflation would peak at 7% this year then ease back to the top of its band by late 2023. However, last week it said there was “a near-term upside risk” to inflation.
Other Details
Prices for construction of new houses were up 4.5% for the quarter and 18% for the year
Gasoline prices rose 6.2% in the quarter and 32% for the year
Food prices gained 1.3% in the quarter and 6.5% for the year
Tradables prices increased 1.9% from the previous quarter and 8.7% for the year
Non-tradable prices rose 1.4% from the previous quarter and 6.3% from a year earlier
Consumer prices excluding food, fuel and energy rose 6.1% from a year earlier. The RBNZ publishes its own core inflation measure later Monday
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Summary
New Zealand experienced a 32-year high inflation rate of 7.3%, surpassing forecasts in Q2 2022. This rise was driven by increased consumer prices in sectors such as construction, gasoline, and food. Central bank sold bonds acquired during quantitative easing to regain control over the spiraling
Reading History
| Date | Name | Words | Time | WPM |
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| 2022/07/18 09:18 | Anonymous | 342 | - | - |