XE Data Update - NZ 1Q Consumer Price Index Release

The NZ Consumer Price Index (CPI) for 1Q has just been released.

The CPI came in considerably higher than expected.

NZ CPI 1Q/Annual:

Headline 1Q CPI +0.8% / +2.5% Consensus 0.4% / +2.1%

Non-tradables CPI +1.4% / +3.4% versus previous quarter / year

The non-tradables group is a barometer of domestic inflation.

Data is mostly prior to the lock down that'll see inflation lower in the months ahead.

Housing and household utilities (especially rental prices and property rates) are the primary driver for the stronger inflation figures, along with higher meat, poultry, and fish prices. Also contributing was the 11% increase in prices for cigarettes and tobacco (due to the excise duty be raise in 1 January).

The NZD is higher in immediate response.

Current indicative levels are:

NZDUSD 0.6020 / 0.6045
NZDAUD 0.9485 / 0.9510
NZDEUR 0.5540 / 0.5565
NZDGBP 0.4815 / 0.4840
NZDJPY 64.80 / 65.05

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