[NZ Q3 PPI REVIEW] Input
By[NZ Q3 PPI REVIEW] Input and moreso output inflation rose more than
expected over Q3, largely due to higher prices for dairy and livestock on
the back of increased raw mild costs and export prices. Input prices rose
by a tad firmer 0.7% on the qtr vs the mkt's 0.5% forecast and after
surging by 1.4% over Q2, whilst output prices continued to surge by 1.2%
q/q, double forecasts on a 0.6% gain after a 1.1% spike prior. On the
year, input price inflation rose by 3.8% (f/c 3.6%) from 2.0% whilst
output price inflation accelerated to 4.0% (f/c 3.4%) from 1.3%. Whilst
the figures show some build up in pressures; the data will unlikely have a
major bearing on RBNZ, especially with input prices, a measure of
wholesale inflation, moderating over the qtr. To this rates are still
expected to be left on hold until next year
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