New Zealand Q2 inflation surprises to downside

By Sophia Rodrigues

Published On 17 Jul 2024 , 08:51 AM

Headline consumer price index inflation rose 0.4% q/q in Q2, resulting in a slowing in the y/y pace to 3.3% versus 4.0% in Q1, data from Statistics New Zealand showed. The outcome was lower than than the RBNZ's forecast of 0.6% q/q and 3.6% y/y.

The slowing in Q2 was largely due to tradable inflation which fell 0.5% q/q, taking the y/y rate to 0.3%, the lowest since December 2020. Non-tradable inflation rose 0.9%, taking the y/y rate to 5.4%. 

Goods inflation rose 2.0% y/y in Q2 vs 3.3% in Q1 while services inflation was unchanged at 5.3% y/y.

 

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