NZ: CPI printed a disappointing figure – RBC CM

New Zealand’s headline CPI fell 0.5ppts to 1.7%y/y, slower than both consensus (1.9%) and RBNZ (2.1%) forecasts as falls in petrol, airfares, and other auto-related categories were evidently more than enough to offset rises in fruit & veg, rent, and electricity, according to analysts at RBC Capital Markets.

Key Quotes

“Underlying measures are not quite as soft as the headline numbers, though they have mainly decelerated a little in y/y terms. Non-tradeables fell 0.1ppt to 2.4%; though only modestly softer, this was the first backward step in core measures for around a year. There is no change to view that RBNZ will remain on hold through 2018.”