New Zealand: Inflation moderates in Q4
January 18, 2016
Consumer prices fell 0.5% in Q4 2015 over the previous quarter, which contrasted Q3’s 0.3% rise and marked a multi-year low. The reading undershot market expectations’ of a softer 0.3% fall. According to the statistical institute, the fall mostly came on the back of a strong decrease in gasoline prices.
Headline inflation fell from 0.4% in Q3 to 0.1% in Q4, thus marking a multi-year low. Consequently, inflation fell further below the lower bound of the Reserve Bank of New Zealand’s 1.0%–3.0% target range.
Author: Eric Denis , Economist