(Bloomberg) -- New Zealand inflation slowed less than economists forecast in the third quarter, prompting the local dollar to jump.
Consumers price index rose 0.2 percent from a year earlier Inflation exceeded the 0.1 percent median forecast of 17 economists and matched the August forecast by the Reserve Bank of New Zealand
Annual inflation slowed from 0.4 percent in the second quarter Prices rose 0.2 percent from the second quarter; economists expected no change Kiwi climbs as high as 71.85 U.S. cents in Wellington from 71.39 cents
Annual inflation has been below the bottom of the RBNZ
’s 1-3 percent target band for eight straight quarters. Economists expect Governor Graeme Wheeler
to cut the official cash rate to a record-low 1.75 percent at the next review on Nov. 10, even amid an overheated housing market and economic growth that’s among the developed world’s fastest. Futures Tuesday are pricing an 80 percent chance of a rate cut next month, down from 84 percent Monday. Some economists said the inflation data may weaken the case for rate reductions beyond November.
“Is the miss here enough to sideline the RBNZ
in November? We doubt it,” said Phil Odonaghoe, an economist at Deutsche Bank AG in Sydney.
, chief economist at ASB
Bank in Auckland, also continues to expect a November cut and sees the risk of another in early 2017, though “this CPI outcome does not add to the case for such a move.”
Tradables prices, which are influenced by currency movements and global markets, were unchanged from the second quarter From a year earlier, tradables prices fell 2.1 percent Non-tradable inflation, a core measure of prices not influenced by the currency, was 0.3 percent in the quarter, led by housing-related costs and higher domestic airfares From a year earlier, non-tradables prices gained 2.1 percent