In New Zealand, an IPC indicator is published every month, but these monthly figures only cover the prices of around 44% of the basket of goods and services, says Volkmar Baur, Commerzbank’s currency analyst.
The RBNZ is expected to cut in May despite the increase in impulse
“The complete inflation data set is only available once to the quarter. And this morning the figures of the first quarter were published. With 0.9% intertrmetral, the price increase rate was slightly higher than the median of the analysts’ forecasts. However, the annual rate only increased slightly 2.2% to 2.5%, which is right in the middle of the objective range of the RBNZ.”
“In a more positive note, the annual rate of services retreated 4.2% (from 4.8% in the previous quarter), closer to the objective of the Central Bank. However, it should also be said that annualized quarterly rates are above the objective of the Central Bank and that the impulse of inflation seems to have increased recently.”
“This should still give the Central Bank margin to cut rates again at the end of May, as I hope. However, it should also be said that six weeks until the next meeting of the Central Bank are quite a long time in the current international environment. As a result, the Kiwi has been operating very cautiously this morning and has not shown much movement.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
