January - March 2023 quarter inflation data from New Zealand.
1.2% q/q
- expected 1.7%, prior 1.4%
- lower energy prices in the quarter a helpful input
6.7% y/y
- expected 7.1%, prior 7.2%
For non-tradeables:
- +1.7% q/q and +6.8% y/y
- domestic price pressures remain, services a key driver of this
- the y/y is the highest since the series began in June 1999
- Non-tradeable inflation measures final goods and services that do not face foreign competition and is an indicator of domestic demand and supply conditions. However, the inputs of these goods and services can be influenced by foreign competition.
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Inflation has come in below estimates but still at elevated levels. Markets are pricing a 25bp rate hike from the Reserve Bank of New Zealand (the meeting is May 24 May (New Zealand time)) and this data would not seem to be enough to counter this.
