ASB economist Nick Tuffey on the New Zealand inflation data and the RBNZ

  • Tradable inflation stronger than expected this quarter, despite falling petrol prices and the recent strength in the New Zealand dollar
  • The RBNZ will also take comfort from the fact that both key measures of core inflation were steady over the quarter even as headline annual inflation fell slightly
  • Still expects a rate cute in November, and says that while there is still a risk of a further cut in 2017, the CPI outcome today "does not add to the case for such a move"

The NZD is off just a little from CPI highs:

More:

  • Heads up for NZD traders - dairy auction today (London time)
  • New Zealand Q3 CPI: 0.2% q/q (vs. expected 0.0%)

ps. the next RBNZ meeting is November 10