UOB Group Economist Lee Chu Ann assesses New Zealand’s latest inflation figures.
Key Statements:
“The CPI rose 1.7% quarter-on-quarter in the first quarter of 2012, slightly below the 1.8% in the first quarter of 2022, but a 1.5% increase above expectations. Compared to the same period last year, the CPI advanced 7.3% year-on-year, an acceleration from 6.9% in the first quarter of 2022. Conclusion Beating expectations for a 7.1% reading.”
“Overall, the inflationary backdrop remains highly uncertain as global inflationary pressures intensify. While today’s readings may represent a spike, inflation is expected to be 5.9% this year (previously 5.5%), before easing to 2.4% in 2023.”
“There are three other monetary policy meetings this year: August 17, October 5 and November 23. The Reserve Bank of New Zealand (RBNZ) will raise rates by 50 basis points in August and again in October and November. This will bring the year-end OCR (reference interest rate) to 4.00 % (Previously 3.75%).”
Caleb Mitchell writes for News Collective, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, reliable reporting and useful information, helping readers stay informed about current events, emerging trends, and stories that matter.