Inflation surged at the fastest pace in 10 years


New Zealand inflation surged at the fastest pace in 10 years in the third quarter. The Reserve Bank of New Zealand, which seeks to keep inflation around the midpoint of a 1-3% target band, raised its official cash rate on Oct. 6 and signaled more increases are coming.

The currency rose and bond yields climbed to the highest level in almost three years after data showed the annual inflation rate jumped to 4.9% from 3.3% in the second quarter. Economists had forecast 4.2%. Consumer prices advanced 2.2% from three months earlier, Statistics New Zealand said Monday in Wellington, exceeding the 1.5% median estimate.

Additional details:

  • Prices for construction of new houses were up 4.5% for the quarter and 12% for the year
  • Gasoline prices rose 6.5% in the quarter and 22% for the year
  • Food prices rose 2.7% in the quarter
  • Tradables prices rose 2.8% from the previous quarter and 5.7% for the year
  • Non-tradable prices, which are less influenced by the currency, increased 1.8% from the previous quarter
  • Non-tradables prices rose 4.5% from a year earlier
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