NZ third quarter inflation higher than expected on housing-related costs
Consumer prices were higher than expected in the third quarter as housing-related costs continued to increase, BusinessDesk reported.
The kiwi dollar rose above 72 US cents for the first time since October 4 and recently traded at 71.93 cents from 71.75 cents immediately before the release.
The consumers price index rose 0.5 in the three months ended September 30, while annual inflation was 1.9%, Statistics New Zealand said.
Economists had expected inflation to be 0.4% in the three months ended September 30, for an annual rate of 1.8%, according to the median in a poll of 13 economists surveyed by Bloomberg. That compares to the central bank’s projection of inflation of 0.2% in the third quarter for an annual rise of 1.6%.
The Reserve Bank is mandated with keeping annual inflation between 1 – 3%, with a focus on the mid-point.
Acting Reserve Bank governor Grant Spencer kept the official cash rate at 1.75% as widely expected at the September review and signalled no change on the immediate horizon.
Rates have been on hold since November 2016, and the central bank’s forecasts show it does not expect to lift rates until September 2019 at the earliest.
The September quarter inflation was higher than the June period when it was unchanged in the quarter and rising at an annual pace of 1.7%.
Housing-related prices continued to increase, up 1% in the quarter and 3% annually.
“Collectively, housing-related costs had the largest upward contribution in the September quarter, slightly offset by falls in transport prices,” Statistic New Zealand added.
Prices for new housing rose 1.1% in the June quarter for an annual increase of 5.4%.
Actual rentals for housing rose 0.6% in the quarter and were up 2.2% on the year.
Rentals increased 1% in Wellington and 0.5% in Auckland and fell 0.2% in Canterbury. It was the largest increase in Wellington rents since December 2008, Statistics New Zealand reported.
Related stories:
Strong economy delivers $4.1 billion surplus
OCR unchanged at 1.75%
The kiwi dollar rose above 72 US cents for the first time since October 4 and recently traded at 71.93 cents from 71.75 cents immediately before the release.
The consumers price index rose 0.5 in the three months ended September 30, while annual inflation was 1.9%, Statistics New Zealand said.
Economists had expected inflation to be 0.4% in the three months ended September 30, for an annual rate of 1.8%, according to the median in a poll of 13 economists surveyed by Bloomberg. That compares to the central bank’s projection of inflation of 0.2% in the third quarter for an annual rise of 1.6%.
The Reserve Bank is mandated with keeping annual inflation between 1 – 3%, with a focus on the mid-point.
Acting Reserve Bank governor Grant Spencer kept the official cash rate at 1.75% as widely expected at the September review and signalled no change on the immediate horizon.
Rates have been on hold since November 2016, and the central bank’s forecasts show it does not expect to lift rates until September 2019 at the earliest.
The September quarter inflation was higher than the June period when it was unchanged in the quarter and rising at an annual pace of 1.7%.
Housing-related prices continued to increase, up 1% in the quarter and 3% annually.
“Collectively, housing-related costs had the largest upward contribution in the September quarter, slightly offset by falls in transport prices,” Statistic New Zealand added.
Prices for new housing rose 1.1% in the June quarter for an annual increase of 5.4%.
Actual rentals for housing rose 0.6% in the quarter and were up 2.2% on the year.
Rentals increased 1% in Wellington and 0.5% in Auckland and fell 0.2% in Canterbury. It was the largest increase in Wellington rents since December 2008, Statistics New Zealand reported.
Related stories:
Strong economy delivers $4.1 billion surplus
OCR unchanged at 1.75%
