New Zealand’s annual inflation rate reached 3 per cent in the third quarter, according to official data released on Monday. This figure aligns with analysts’ forecasts and sits at the upper limit of the central bank’s target range. The Consumer Price Index (CPI) saw a 1 per cent increase in the third quarter compared to the previous quarter, according to Statistics New Zealand.
This represents an acceleration from the 0.5 per cent increase recorded in the second quarter, although it matched the expectations outlined in a Reuters poll. The Reserve Bank of New Zealand (RBNZ) aims to maintain annual inflation between 1 per cent and 3 per cent over the medium term to ensure price stability and support sustainable economic growth.
The Reserve Bank of New Zealand, which forecast annual inflation at 3 per cent for the quarter in August, reduced the official cash rate by 50 basis points to 2.5 per cent at its most recent meeting. This decision reflected concerns regarding economic weakness. RBNZ acts as New Zealand’s central bank. Its primary functions include formulating monetary policy and maintaining financial system stability.
Statistics New Zealand indicated that the third-quarter inflation result was primarily driven by increases in electricity prices and rental costs. Additionally, rises in local government taxes contributed to the overall increase in the CPI.
