New Zealand sees annual inflation at 2.2%, now within central bank target range
INFLATION in New Zealand was at 2.2 per cent in the third quarter of 2024, according to data released by Statistics New Zealand on Wednesday, returning it to the central bank’s target range for the first time since March 2021.
Statistics New Zealand said in a statement that the consumer price index rose 0.6 per cent in the third quarter from the prior quarter, compared with a 0.4 per cent rise in the previous quarter.
It added annual inflation was at 2.2 per cent following a 3.3 per cent increase in the June quarter.
Economists polled by Reuters expected consumer prices to have risen 0.7 per cent quarter-on-quarter and 2.2 per cent year-on-year. The central bank had expected year-on-year inflation of 2.3 per cent.
New Zealand’s central bank has cut the official cash rate by 75 basis points since August as it assessed that inflation had returned to its target band of 1 per cent to 3 per cent and was nearing the 2 per cent mid-point.
It is expected to continue to cut rates over the coming year to stimulate the economy, which is struggling in part due to high interest rates.
However, the central bank has yet to win the battle with non-tradeable inflation. Annual non-tradeable inflation was at 4.9 per cent, according to Statistics New Zealand.
The main drivers of the annual inflation were higher rent prices, Statistics New Zealand said in a statement. REUTERS
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