New Zealand: 2Q24 inflation eases faster than expected

Inflation in New Zealand slowed more than expected in 2Q24, and it is cooling faster than expected, UOB Group economist Lee Sue Ann notes.

Inflation cools down faster than expected

“Inflation in New Zealand slowed more than expected in 2Q24, to its weakest in three years. CPI rose 0.4% q/q in 2Q24, a tad lower from the 0.6% q/q reading in 1Q24. Compared to the same period a year ago, CPI eased to 3.3% y/y, from the 4.0% y/y reading in 1Q24.”

“Non-tradeable inflation, a closely watched indicator of domestic price pressures, also eased to 0.9% q/q from 1.6% q/q in 1Q24. Compared to the same period a year ago, non-tradable inflation came in at 5.4% y/y in 2Q24, compared to the previous reading of 5.8% y/y.”

“While inflation remains above the RBNZ’s 1%-3% target band, it is cooling faster than expected. This, alongside weakening momentum in the domestic economy, should provide some impetus for the central bank to begin easing later this year. We are currently maintaining our view for the first rate cut to occur in 4Q24 (Nov).”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.