HiFX Data Update - NZ Q3 CPI Release

The NZ Consumer Price Index (CPI) for Q3 has just been released.

The CPI came in higher than expected.

NZ CPI Q3/Annual:

Headline Q3 CPI +0.9% / +1.9% Consensus 0.7% / +1.7%

Non-tradables CPI +0.8% / +2.6% versus previous quarter
Tradables CPI +0.9% versus previous quarter

The non-tradables group is a barometer of domestic inflation.

Petrol prices are the primary culprit for the higher inflation figures. They have increased 19% in the past 12 months, driven by a weaker NZD$, higher oil prices, plus the Auckland regional fuel tax.

The NZD is sharply higher in immediate response.

Current indicative levels are:

NZDUSD 0.6580 / 0.6605
NZDAUD 0.9220 / 0.9245
NZDEUR 0.5675/ 0.5700
NZDGBP 0.4995 / 0.5020
NZDJPY 73.55 / 73.80

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