Sudden bounce in New Zealand inflation ends prospect of interest rate cut
Source: Xinhua   2017-01-26 10:38:45

WELLINGTON, Jan. 26 (Xinhua) -- New Zealand's consumer inflation rate edged back up to 1.3 percent last year, back within the central bank' target inflation range of 1 percent to 3 percent for the first time in two years.

The consumers price index (CPI) inflation rate was driven up by housing-related prices (up 3.5 percent), new homes excluding land (6.5 percent) and home rentals (2 percent), the government's Statistics New Zealand agency said Thursday.

"This is the first time in over two years that price increases for household purchases have been over 1 percent," prices senior manager Jason Attewell said in a statement.

"Household price inflation is up from a historical low of 0.1 percent for the December 2015 year."

Prices for tradable goods and services were down 0.1 percent, and petrol and international airfares were also cheaper than a year previously.

Non-tradable goods and services showed a 2.4-percent increase, influenced by housing-related price increases.

The CPI rose 0.4 percent in the quarter ending December 2016, following a 0.3-percent rise in the September 2016 quarter.

Analysts said the quarterly and annual rises were more than expected and exceeded the forecasts of the Reserve Bank of New Zealand (RBNZ).

"Underlying inflation pressures appear to have lifted, something which the RBNZ will be relieved to see," said an economic note from the ASB Bank.

The result would put further cuts to the RBNZ's official cash rate (OCR), currently at a record low 1.75 percent, "well off the table, barring some major development," it said.

"But, with inflation only just within the target band for the first time in over two years and the high New Zealand dollar a key downside risk, we expect the RBNZ to leave the OCR on hold for the foreseeable future."

Editor: ying
Related News
Xinhuanet

Sudden bounce in New Zealand inflation ends prospect of interest rate cut

Source: Xinhua 2017-01-26 10:38:45
[Editor: huaxia]

WELLINGTON, Jan. 26 (Xinhua) -- New Zealand's consumer inflation rate edged back up to 1.3 percent last year, back within the central bank' target inflation range of 1 percent to 3 percent for the first time in two years.

The consumers price index (CPI) inflation rate was driven up by housing-related prices (up 3.5 percent), new homes excluding land (6.5 percent) and home rentals (2 percent), the government's Statistics New Zealand agency said Thursday.

"This is the first time in over two years that price increases for household purchases have been over 1 percent," prices senior manager Jason Attewell said in a statement.

"Household price inflation is up from a historical low of 0.1 percent for the December 2015 year."

Prices for tradable goods and services were down 0.1 percent, and petrol and international airfares were also cheaper than a year previously.

Non-tradable goods and services showed a 2.4-percent increase, influenced by housing-related price increases.

The CPI rose 0.4 percent in the quarter ending December 2016, following a 0.3-percent rise in the September 2016 quarter.

Analysts said the quarterly and annual rises were more than expected and exceeded the forecasts of the Reserve Bank of New Zealand (RBNZ).

"Underlying inflation pressures appear to have lifted, something which the RBNZ will be relieved to see," said an economic note from the ASB Bank.

The result would put further cuts to the RBNZ's official cash rate (OCR), currently at a record low 1.75 percent, "well off the table, barring some major development," it said.

"But, with inflation only just within the target band for the first time in over two years and the high New Zealand dollar a key downside risk, we expect the RBNZ to leave the OCR on hold for the foreseeable future."

[Editor: huaxia]
010020070750000000000000011100001360141631