NZ: Strong energy prices will boost Q4 CPI - TDS

Analysts at TDS note that New Zealand’s Q4 CPI is due to be released tomorrow  and strong energy prices will boost Q4 CPI, and base effects of a very weak Dec qtr 2015 means the annual rate jumps from 0.4% to 1.3%/yr. 

Key Quotes

“Is this sufficient to prompt the RBNZ to adopt a hawkish bias for the Feb 9 OCR Review?  The devil will lie with the details, but we think the RBNZ will be hesitant to signal a hawkish bias so soon after the “lessons learned” in moving too quickly in 2013/14.”