New Zealand Q1 Inflation Rate Eases to 1.5%

The annual inflation rate in New Zealand fell to 1.5 percent in the first quarter of 2019 from 1.9 percent in the previous period and below market expectations of 1.7 percent. The slowdown was mainly driven by a fall in cost of transport, communication and household contents and services.

Year-on-year, prices slowed for housing & utilities (3.0 percent compared to 3.1 percent in Q4 2018), of which rentals for housing (2.4 percent),  construction (3.6 percent), and local authority rates (5.1 percent); recreation & culture (0.8 percent compared to 2.1 percent); and miscellaneous goods & services (2.5 percent compared to 2.9 percent). Additionally, prices dropped for transport (-0.1 percent compared to 3.5 percent); and household contents and services (-0.8 percent compared to 0.6 percent). Also, cost of communication continued to fall (-3.7 percent, the same as in Q4), namely telecommunication equipment (-23 percent).

On the other hand, prices went up further for the food group (1.3 percent compared to 0.6 percent); and alcoholic beverages & tobacco (4.2 percent compared to 3.8 percent), mostly cigarettes and tobacco (7.7 percent). In addition, cost of clothing & footwear declined less (-0.6 percent compared to -1.0 percent) and prices of education rebounded (1.7 percent compared to -5.5 percent). 

On a quarterly basis, consumer prices increased 0.1 percent, unchanged from the previous period and below market forecasts of 0.3 percent. 

New Zealand Q1 Inflation Rate Eases to 1.5%

Statistics New Zealand | Stefanie Moya |
4/17/2019 10:51:54 AM