Consumer prices in New Zealand increased 1.9 percent year-on-year in the fourth quarter of 2018, the same pace as in the previous quarter and slightly above market expectations of 1.8 percent. Inflation stood at its highest level in five quarters. Prices remained elevated for housing & utilities (3.1 percent, the same pace as in Q3) and inflation went up for the food group (0.6 percent vs 0.2 percent); health (1.6 percent vs 0.8 percent) and recreation & culture (2.1 percent vs 0.4 percent). Meanwhile, cost eased for transport (3.5 percent vs 5.6 percent). On a quarterly basis, prices edged up 0.1 percent, after a 0.9 percent gain in Q3 while markets had expected no change. Inflation Rate in New Zealand averaged 4.67 percent from 1918 until 2018, reaching an all time high of 44 percent in the third quarter of 1918 and a record low of -15.30 percent in the first quarter of 1923.
Inflation Rate in New Zealand is expected to be 1.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in New Zealand to stand at 1.80 in 12 months time. In the long-term, the New Zealand Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.