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17 Apr 2013
Forex Flash: The RBNZ will be very comfortable with today's CPI - Westpac
FXstreet.com (Barcelona) - NZ CPI rose 0.4% q/q, 0.9% y/y, in line with Westpac’s forecast. According to the bank, "the high exchange rate has been a powerful force suppressing inflation in recent times, and this quarter was no exception."
Westpac expands: "The big threat to domestic inflation is the Canterbury rebuild. On that score, construction costs and rents in the Canterbury region rose sharply this quarter. However, there was no sign that rebuild-related inflation was leaking into other regions of New Zealand."
The banks adds that the Reserve Bank will be very comfortable with this data: "In particular, another downside surprise on inflation (Q4 was -0.2%) would have raised eyebrows, but this has been avoided."
Westpac expands: "The big threat to domestic inflation is the Canterbury rebuild. On that score, construction costs and rents in the Canterbury region rose sharply this quarter. However, there was no sign that rebuild-related inflation was leaking into other regions of New Zealand."
The banks adds that the Reserve Bank will be very comfortable with this data: "In particular, another downside surprise on inflation (Q4 was -0.2%) would have raised eyebrows, but this has been avoided."