New Zealand’s CPI result showed a dip into the deflationary stakes, mainly on the back of lower petrol prices (which are more sensitive than here in Australia) and food.
Credit Suisse has the salient points:
- The December 2015 quarter CPI outturn showed a quarterly fall of 0.5% QoQ and an annual rise of just 0.1% YoY.
- This was below median market expectations for a decline of 0.2% QoQ rise and a 0.3% YoY increase.
- This outturn was the smallest annual movement since the September 1999 quarter.
CS is right to point out there is a “muted backdrop” of pressures on inflation, with a similar view to Australia’s underlying print always hitting below the mid-point both central banks are keen to watch: