MNI BRIEF: New Zealand CPI Rises To 4.1%

Headline inflation accelerated more than expected in the June quarter, driven by higher fuel and housing costs, while core inflation remained contained, Stats NZ data showed Tuesday.

The consumer price index rose 1.5% q/q in Q2, up from 0.9% in Q1, lifting annual inflation to 4.1% from 3.1%, above the Reserve Bank of New Zealand's July forecast of 3.9%. (See MNI RBNZ WATCH: Financial Conditions Prompt OCR Hike To 2.5%) 

Tradables inflation accelerated to 4.9% y/y, while non-tradables inflation eased to 3.4%. Core inflation was 2.5%.

The largest contributors to the quarterly increase were petrol prices, which rose 20.1% and accounted for nearly half of the overall CPI increase, other vehicle fuels and lubricants, up 47.7%, and housing purchases, which increased 1.6%.

Offsetting some of the upward pressure were lower fruit prices, down 8.5%, and a 12.0% fall in domestic accommodation services.