New Zealand: Inflation moderates in Q4
Inflation declined to 4.7% in Q4 from 5.6% in Q3. Although the reading represented the lowest inflation since Q2 2021, it remained entrenched above the Central Bank’s 1.0%-3.0% target band. The deceleration came on the back of softer increases in prices for food and housing and household utilities.
Meanwhile, consumer prices rose 0.5% from the previous quarter in Q4, coming in below Q3’s 1.8% increase and marking the slowest increase in prices since Q4 2020.
Commenting on the release, Lee Sue Ann, economist at UOB, stated:
“While headline CPI is still above the Reserve Bank of New Zealand’s target band of 1%-3%, the significant slowdown in the latest numbers reinforces our view that the official cash rate, which currently sits at 5.5%, has peaked.”