New Zealand: Inflation pressure remains sluggish – UOB

Economist at UOB Group Lee Sue Ann assessed the latest inflation figures in New Zealand.

Key Quotes

“Consumer prices in New Zealand rose 0.7% q/q in the third quarter, reversing a 0.5% q/q decline in the second quarter, but less than the 0.9% q/q forecast. The quarterly gain in prices was led by a 1.2% rise in food costs and a 3.1% rise in local government taxes.”

“The Reserve Bank of New Zealand (RBNZ) in August had projected inflation would slow to just 0.3% by the end of 2021, and has signalled it is prepared to provide more stimulus through negative interest rates if needed.”