New Zealand: Inflation is stable in Q4
Latest reading: Inflation was stable from Q3 2024 at 2.2% in Q4. The Q4 reading represented the joint-lowest inflation since Q1 2021 and was within the Central Bank’s 1.0%–3.0% target band. However, the reading was slightly above market expectations. As in the prior quarter, the largest contributors to Q4’s year-on-year increase in prices were housing rents, tobacco and local authority rates, while prices for petrol and vegetables fell.
Meanwhile, consumer prices rose 0.5% from the previous quarter in Q4 2024, coming in below Q3 2024’s 0.6% rise.
Panelist insight: On the monetary policy implications, ANZ analysts said:
“The RBNZ won’t welcome slightly higher than forecast headline inflation, but a small downside miss on non-tradable inflation should trump the small upside miss on the tradable side, meaning a 50bp cut in February remains appropriate.”