Forex - New Zealand CPI Review - Inflation data will not change RBNZ's intention to ease again

 00:12 (GMT) 16 Jul

  [Economic Data]   [Central Banks]

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NZ CPI rose 1.7% in the June quarter from a year ago, as per market expectations, from 1.5%y/y in the first quarter. The print is slightly below our estimate for 1.8%y/y increase in Q2. The data is in line with RBNZ's forecast in May. Housing, household utilities, fuel and food prices are the key drivers for inflation in the June quarter. Otherwise, price pressure elsewhere is subdued. Tradables remains weak -rose 0.1%y/y or 0.9% q/q- despite coming off a 1.3% decline the first quarter. Non-tradables annual rate remains high at 2.8%, but only rose 0.3% from the prior quarter. Market pricing for an August cut remains stable around 85%. NZD/USD had little reaction.

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