NZ: Monthly Inflation Gauge up 0.3% in August – ANZ

New Zealand’s ANZ Monthly Inflation Gauge was up 0.3% m/m in August, supported by transport, accommodation services, and housing-related components, notes the research team at ANZ.

Key Quotes

“Annual inflation in the Gauge ticked up to 2.9%, suggesting that recent strength in domestic non-tradable inflation is holding up and implying some upside risk to our near-term inflation forecast.”

“On a rolling 3-monthly basis, the Gauge rose 0.9% q/q from 0.6% in July. Annual growth ticked up further to 2.9% from 2.8%, increasing above Stats NZ’s 2.8% y/y figure for Q2 non-tradable inflation. Excluding housing-related prices, the Gauge rose 0.2% m/m, leaving annual growth unchanged at 1.1%.”

“Monthly inflation prints so far suggest some upside risk to our current Q3 nontradable pick of 0.7% q/q (2.7% y/y). That said, weaker economic growth and more spare capacity should see price pressures fade over the next year.”