16 Apr 2014
NZ CPI below estimates, NZD breaks below 0.86
FXStreet (Bali) - New Zealand CPI (QoQ) for the first trimester of 2014 came at 0.3% vs 0.5% expected and 0.1% last, with the annual reading (YoY) in this first trimester standing at 1.5% vs 1.7% exp and 1.6% last.
The data is a negative input for the NZD, presently testing .86 bids, as lower prices remove pressure to the RBNZ to further tighten monetary policy, currently under a rate hikes campaign that could last for years.
Key facts - Statistics New Zealand
Quarterly change
In the March 2014 quarter, compared with the December 2013 quarter:
The consumers price index (CPI) rose 0.3 percent.
Cigarettes and tobacco (up 10.2 percent) was the main contributor, following an 11.28 percent rise in excise duty in January.
Housing and household utilities rose 0.7 percent, reflecting higher prices for purchase of newly built houses, rentals for housing, and property maintenance.
Seasonally lower prices for international air fares (down 10 percent), vegetables (down 5.8 percent), and package holidays (down 5.9 percent) were the main downward contributors.
Annual change
From the March 2013 quarter to the March 2014 quarter:
The CPI increased 1.5 percent.
About half of the increase came from housing and household utilities (up 3.3 percent).
The CPI measures the rate of price change of goods and services purchased by New Zealand households. Statistics NZ visits 3,000 shops around New Zealand to collect prices for the CPI and check product sizes and features.
The data is a negative input for the NZD, presently testing .86 bids, as lower prices remove pressure to the RBNZ to further tighten monetary policy, currently under a rate hikes campaign that could last for years.
Key facts - Statistics New Zealand
Quarterly change
In the March 2014 quarter, compared with the December 2013 quarter:
The consumers price index (CPI) rose 0.3 percent.
Cigarettes and tobacco (up 10.2 percent) was the main contributor, following an 11.28 percent rise in excise duty in January.
Housing and household utilities rose 0.7 percent, reflecting higher prices for purchase of newly built houses, rentals for housing, and property maintenance.
Seasonally lower prices for international air fares (down 10 percent), vegetables (down 5.8 percent), and package holidays (down 5.9 percent) were the main downward contributors.
Annual change
From the March 2013 quarter to the March 2014 quarter:
The CPI increased 1.5 percent.
About half of the increase came from housing and household utilities (up 3.3 percent).
The CPI measures the rate of price change of goods and services purchased by New Zealand households. Statistics NZ visits 3,000 shops around New Zealand to collect prices for the CPI and check product sizes and features.