Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

New Zealand inflation surges at fastest pace in over a decade

Economic IndicatorsOct 17, 2021 06:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Shoppers are seen at a mall in Wellington, New Zealand July 16, 2020. Picture taken July 16, 2020. REUTERS/Praveen Menon

By Praveen Menon

WELLINGTON (Reuters) -New Zealand's Consumer Price Index (CPI) rose 2.2% in the third quarter, beating expectations and surging at the fastest pace in over a decade driven by housing-related costs and other supply constraints, data released on Monday showed.

CPI rose 2.2% in the quarter ending September from a rise of 1.3% in the second quarter, the biggest quarterly movement since a 2.3% rise in the December 2010 quarter, Statistics New Zealand said in a statement.

Annual inflation surged 4.9% compared to a rise of 3.3% in the previous quarter, also the biggest annual movement in more than a decade.

The data beat analysts' expectations in a Reuters poll and forecasts of the Reserve Bank of New Zealand (RBNZ), both of which put the quarterly inflation rise at 1.4%, lifting annual inflation to 4.1%.

The main drivers were housing-related costs, such as construction of new houses and local authority rate, Statistics New Zealand said in its statement.

Vegetable prices was the second major driver along with transport costs and fuel prices. New Zealand's largest city, Auckland, has been in lockdown since mid-August to stamp out an outbreak of the Delta variant of coronavirus.

The New Zealand dollar jumped, touching $0.7103, as traders anticipated more monetary policy tightening by the central bank in response to the higher than expected inflation.

RBNZ hiked rates earlier this month, and signalled further tightening to come, as it looks to keep inflation near its target 1-3% range, and to cool a red-hot housing market.

"We had already expected the RBNZ to continue hiking rates despite the Auckland lockdown," said Ben Udy, an economist at Capital Economics.

"But the strength in consumer prices in Q3 will surely nudge the Bank towards an even more aggressive hiking cycle," he said.

New Zealand inflation surges at fastest pace in over a decade
 

Related Articles

Spain's joblessness falls back to pre-pandemic levels
Spain's joblessness falls back to pre-pandemic levels By Reuters - Dec 02, 2021

MADRID (Reuters) - The number of people registering as jobless in Spain fell 2.28% in November from October, or by 74,381 people, as unemployment reached pre-pandemic levels with...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Co Gonz
Co Gonz Oct 18, 2021 8:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
world government created this by shutting down completely- U.S. had 700k deaths, in 2 years- cancer, diabetes, alcohol etc ****more per year
Rasp Trade
Rasp Trade Oct 17, 2021 11:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And no infalfion in US, lol
Tyrone Jackson
Tyrone Jackson Oct 17, 2021 6:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Where are all 10 million illegals going to live??? Lol I hope you own real estate in the IS double and triple rents.
Todd Gray
Todd Gray Oct 17, 2021 6:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh, wowie! Really? Earth is nearing it's end very, very, very, soon.
Millennial Metals
Millennial Metals Oct 17, 2021 6:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Let everything collapse
James Sheehan
James Sheehan Oct 17, 2021 6:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
break the dams and open the gates to goblin town.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email