Headline CPI rose 0.4% in Q2 - ANZ

Stubbornly weak inflation rates suggest the official cash rate will remain locked at record low 1.75 for the foreseeable future

New Zealand's consumer price index was expected to have risen slightly in the second quarter in official figures due out on Tuesday, but is unlikely to change the central bank's stance given weak underlying inflationary pressures. It traded at 57.81 euro cents from 57.78 cents and rose to 4.5211 yuan from 4.5124 yuan. For the record, we anticipate 0.6% q/q, for annual CPI inflation of 1.7% (and on course for 2.2% by end-2018).

The kiwi traded at 67.58 U.S. cents as at 8am in Wellington from 67.63 cents in NY on Friday and from 67.75 cents in Wellington at the end of last week.

The biggest driver behind the quarterly lift was housing-related prices, up 0.9 per cent in the quarter and 3.1 per cent annually. Broadly as expected, the food group rose 0.8% q/q and petrol prices rose 3.2% q/q.

"New Zealanders are paying more to keep their homes running, Statistics NZ Prices Senior Manager Paul Pascoe says".

Rates, property maintenance services, and home insurance are all higher than they were this time past year, Pascoe said.

Dwelling insurance prices have jumped 18% when compared to the year to June 2018. Used auto prices fell 3.3 percent, while subscriber TV and audio-visual equipment fell 7.2 percent and 15 percent, respectively.

Excluding the impact of petrol prices, StatsNZ said CPI increased by 1.1% over the year.

In the quarter, construction prices in Auckland and Wellington rose 0.6 percent and 0.7 percent, respectively.

"It was cheaper to buy a used auto this quarter as dealerships looked to move some stock, but that was offset by higher running costs", Mr Pascoe said.

Food prices, meanwhile, lifted 0.8 per cent in the quarter, with fruit and vegetable prices up 3.1 per cent. Food prices rose 0.7 per cent on the year.

Home entertainment prices fell in the June 2018 quarter, with better value audio-visual equipment and lower prices for subscriber TV.

The tradables CPI, which includes goods and services that compete with global rivals, rose 0.3 per cent in the quarter and was up 0.1 per cent on the year.

New Zealand CPI rose by 0.4% in the June quarter, below the 0.5% increase expected by financial markets. Central bank chief Karnit Flug has said rates likely will not rise until inflation moves back to within its target range and is entrenched there.

Related News:

  • OKC trades Carmelo Anthony to Atlanta Hawks for Dennis Schroder, Mike Muscala

    OKC trades Carmelo Anthony to Atlanta Hawks for Dennis Schroder, Mike Muscala

    The Thunder will now see their projected luxury tax bill drop from $150M to $88.8M, a savings of $62M. Anthony averaged 16.2 points, 5.8 rebounds and 1.3 assists during his one season in Oklahoma City.
    Warming UK waters will attract newer shark types

    Warming UK waters will attract newer shark types

    A 9ft-long specimen was caught near Whitby in May, just days after a fisherman was bitten by the same species off the Cornish coast.
    UNC Football excited about addition of Javonte Williams

    UNC Football excited about addition of Javonte Williams

    Fedora said he believes the CTE data has been put out as fact and it has swayed some people away from football entirely. Are there chances for concussions? In the main press conference , he praised football for being safer than ever.
  • Titans: Screencaps From The DC Universe Trailer

    Titans: Screencaps From The DC Universe Trailer

    But the main take away is how dark and gritty it is, to the point where I started cracking up when Robin said, "Fuck Batman". And now with the first official trailer for Titans having released, it looks as though those comparisons were apt.
    Don't Go Near The 'Mr Bean' Death Hoax Doing The Rounds

    Don't Go Near The 'Mr Bean' Death Hoax Doing The Rounds

    This time, the posts about the British actor's death may bring more than just misinformation with it: a possible computer virus. The hoax video appears to have resurfaced from July of 2017, when it first sparked fears that Atkinson had died.
    Diamonds Deposits Found InThe Earth’s Interior Thanks To A Seismic Anomaly

    Diamonds Deposits Found InThe Earth’s Interior Thanks To A Seismic Anomaly

    The latest insights come thanks to years of seismic data from the USGS, used to solve a persistent mystery among geologists. That's exactly what researchers from MIT have accomplished with the help of seismic waves flowing through the Earth.
  • Utah's Tony Finau tied for second early at British Open

    Utah's Tony Finau tied for second early at British Open

    Carnoustie is brown this week because it's often brown, but particularly as a result of an unusually hot and dry summer. There's no surprises where the bunkers are and what the greens are like; it's purely going to be about the conditions".
    UnitedHealth Puts Up Big Profit Numbers In 2nd Quarter

    UnitedHealth Puts Up Big Profit Numbers In 2nd Quarter

    Trade volume reached 3,621,400 shares against this stock's average daily volume of 2.65M shares, with a total float of 945.43M. The stock dispatched 11.58% performance during the quarter and performance arrived at 12.40% over the last six months.

    New York State Opens Probe Into Trump Charity, NYT Says

    While doing so is not required by law, it has been a tradition for candidates to turn over their returns for public scrutiny. Law&Crime reached out to Trump Foundation official for comment, but they had not responded by the time of this publication.
  • Celtic vs Rosenborg: Simunovic red card gives Brendan Rogers defensive headache

    Celtic vs Rosenborg: Simunovic red card gives Brendan Rogers defensive headache

    The important thing was how we dealt with it, we were really calm and weren't flustered, we still tried to attack the game. I think it will be a different match than previous year .
    At the box office, 'Skyscraper' falls to 'Hotel Transylvania 3'

    At the box office, 'Skyscraper' falls to 'Hotel Transylvania 3'

    Movie studio Universal is banking on his massive worldwide following to justify the film's pricey US$125 million budget. Bo Burnham wrote and directed the critically lauded feature, which made US$255,000 when it opened on four screens.

    Trump Slams Interest Rate Hikes, Ignoring Hands-Off Tradition Toward Fed

    Its rate hikes are meant to prevent the economy from overheating and igniting high inflation. 'I'm not happy about it. Trump also said Fed Chairman Jerome Powell, whom he nominated, is "a very good man".

Most liked

Nigerian Police Parade Eight Suspected Kidnappers Of Chibok Girls
Some 2,000 girls and boys have been abducted by Boko Haram since 2014, with many used as sex slaves, fighters and even suicide bombers, according to Amnesty International.

3 hours ago Rhian Brewster delighted to sign new Liverpool deal
Liverpool forward Rhian Brewster has ended speculation about his future by signing a long-term deal with the club. You're going to get knocked down sometimes; unfortunately, I did with my ankle being injured.

Modern urged Russian Federation to accept responsibility for downed MH17
The Russian Foreign Ministry drew attention to the fact that although a party concerned, Ukraine is a member of the Joint Investigation Team (JIT).

STAR WARS: CLONE WARS Revived for Surprise Seventh Season
I think the stories left an indelible impression and, of course, George knew it would. Warning: You might end up binge-watching Star Wars: The Clone Wars after reading.

HTC to quit Indian smartphone market
Chinese brands like Xiaomi , OPPO and Vivo have gained a lion's share of the Indian smartphone market, leaving HTC way behind. However, HTC is not yet completely dissolving the Indian operation completely. "As of now, it is quitting", the source said.

Kim Kardashian West's Perfume Company Sued for Ripping Off Logo
According to TMZ , Kim Kardashian has been accused of plagiarism over a logo for one of her new lines of perfume. Reality TV star Kim Kardashian West is reportedly being sued for allegedly stealing a marketing company's logo.

Philippines, Australia fined and 15 suspended for 'basketbrawl'
The world governing body announced its decision on Thursday following a thorough review of the ugly incident. Milwaukee Bucks star Maker was handed a three-match sanction while Goulding was banned for one match.

POTUS Goes Twitter Bonkers: "Trump Recognized Russian Meddling MANY TIMES"
Trump asserted Wednesday at the White House that no other American president has been as tough on Russian Federation . Kosachev also said if the summit turns out to be a failure, it won't be the fault of Putin or Trump.

October bout in Chicago confirmed for Katie Taylor
Katie Taylor has been confirmed to defend her titles against Cindy Serrano on October 6 in Chicago, Illinois . She'll be defending her titles despite the fact she's already scheduled to do that before facing Serrano.

Huge Egyptian sarcophagus found to contain three mummies
A carved alabaster head was also discovered at the site which is likely to belong to whomever is inside the tomb. The 30-ton tomb was found at a depth of 5 meters beneath the surface of the land.

Liam Hemsworth Seemingly Responds to Miley Cyrus Breakup Rumors with This Video
However, now, a new report claims that the wedding never happened and the couple is actually broken up. Miley Cyrus and Liam Hemsworth are dancing off those split rumors.

Made in America won't be held on Parkway past 2018
He said the festival has since 2012 "had a positive $102.8 million economic impact". "Over the years, tourism has grown overall". Philadelphia, an iconic city, represents those ideals.

First Trailer Arrives For Overlord
They stumble into a Nazi-occupied village to discover some twisted medical experiments. However, Paramount Pictures sold The Cloverfield Paradox to Netflix.

Netflix revamps TV interface
In our testing of this new interface, we saw that that this simpler design helped members find something great to watch. Netflix is revamping its TV interface globally today to make it simpler and easier to navigate for users.

FBI Director Wray says Russia continues to sow discord in U.S.
Until last night's CBS interview , that put Wray at odds with his boss. "The intelligence community's assessment has not changed". Wray said China is the broadest, most challenging, most significant threat to the United States.