Inflation & Prices
NZ Inflation Slows Less Than Expected on Sticky Domestic Prices
- Kiwi dollar jumps as non-tradable inflation beats estimates
- Data suggest RBNZ will need to keep policy tight for some time
A clothing store in Wellington, New Zealand, on July 10.
Photographer: Mark Coote/BloombergThis article is for subscribers only.
New Zealand inflation slowed less than expected in the second quarter as domestic prices remained stubbornly high, suggesting the central bank will need to remain vigilant. The local dollar jumped.
The annual inflation rate fell to 6% from 6.7% in the first quarter, Statistics New Zealand said Wednesday in Wellington. Economists expected 5.9% while the Reserve Bank had forecast 6.1%. Consumer prices advanced 1.1% from three months earlier, more than the 0.9% median estimate.