New Zealand inflation data for the July, August, and September quarter.
2.2% q/q
- expected 1.6%, prior 1.7%
- rents, building costs are key drivers of the surge
7.2% y/y
- expected 6.6%, prior 7.3%
Domestic inflation (i.e. non-tradeables) is +2% q/q and +6.6% y/y (the y/y is the highest since the series began in June 2000)
- Non-tradeable inflation measures goods and services that do not face foreign competition. It is an indicator of domestic demand and supply conditions (ps. this is a simplified description)
Tradeables inflation +8.1% y/y (prior +8.7)
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The inflation data will keep RBNZ rate hikes on the boil. The highest ever y/y reading for domestic inflation will ensure that. The q/q smashing expectations and jumping even higher from Q2 will lock it in.
There is only more meeting this year, then a 3 month wait for the next:
