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New Zealand Inflation Surprise Suggests No More RBNZ Rate Cuts

  • Annual inflation rate steady at 1.4%; economists saw 1.1%
  • Holiday accommodation, construction drive quarterly CPI gains
Pedestrians and shoppers walk along Lambton Quay in Wellington, New Zealand, on Dec. 15, 2020. 
Photographer: Birgit Krippner/Bloomberg
Updated on

New Zealand inflation was firmer than economists expected in the fourth quarter, adding to signs the central bank may not need to cut interest rates any further.

Consumer prices rose 1.4% from a year earlier, Statistics New Zealand said Friday in Wellington, matching the third-quarter reading. Economists expected inflation to slow to 1.1%. Prices rose 0.5% from three months earlier, exceeding the 0.2% forecast.