MNI BRIEF: NZ Q1 CPI Higher Than Expected At 3.1% Y/Y

New Zealand headline inflation rose 3.1% year-on-year in Q1, 20 basis points above expectations, with non-tradeables inflation increasing 1.1% quarter-on-quarter, above the anticipated 0.9%, data from Stats NZ showed Tuesday.

The headline rate was unchanged from Q4 and 30bp higher than the Reserve Bank of New Zealand had forecast in its February Monetary Policy Statement. (See MNI RBNZ WATCH: MPC Discussed Front-Loading Hikes)

Higher electricity prices accounted for more than a tenth of the 3.1% annual increase, Stats NZ prices and deflators spokesperson Nicola Growden said. This marked the third consecutive quarter in which electricity was the biggest upward contributor to annual inflation.