New Zealand inflation at 3.7 per cent, below forecast but still elevated

Summarised from 2 outlets · Updated 22 Oct, 00:02 · Archive

New Zealand's inflation came in at 3.7 per cent, below expectations but still above the Reserve Bank's target.

New Zealand's annual consumer price index came in at 3.7 per cent on Thursday, below most retail bank and Reserve Bank forecasts but still above the central bank's target band. The figure represents a dip from 4.1 per cent in the year to June. Petrol costs, which rose 19 per cent year on year, drove much of the price growth.

Inflation has now remained outside the target band for a year, having prompted two rate rises in the past six months. The Reserve Bank meets on 28 October to decide on monetary policy, a week before New Zealand's election on 7 November, which is already underway.

ASB senior economist Mark Smith said the bank expected the consumer price index to stay outside the target band for at least two years. He forecast 25 basis point rate rises in October and December, with a peak official cash rate of 3.25 per cent, though he added that risks to rates over 2027 were 'heavily skewed to the upside'.

How it is being reported

• Inflation below forecast but still hot in New ZealandInflation at 3.7 per cent means all eyes are on the Reserve Bank, which meets next week, to see if it will raise rates a week out from New Zealand's election.The West Australian · 21 Oct, 23:35
• Inflation below forecast but still hot in New ZealandInflation at 3.7 per cent means all eyes are on the Reserve Bank, which meets next week, to see if it will raise rates a week out from New Zealand's election.Perth Now · 21 Oct, 23:35

In this story: Reserve Bank of New Zealand · Stats NZ · National party · New Zealand · Mark Smith · ASB

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