New Zealand inflation cools more than expected in Q3

New Zealand's consumer inflation slowed more than anticipated in the third quarter, according to Statistics New Zealand. The Consumer Price Index (CPI) inflation rose by 0.7% quarter-on-quarter, which was 0.1 percentage points lower than the forecast of 0.8%. On an annual basis, CPI inflation decelerated to 3.7% from 4.1% in the previous quarter, falling short of the 3.8% expected by analysts.

Despite the cooling trend, New Zealand's inflation rate still exceeded the Reserve Bank of New Zealand (RBNZ) target range of 1% to 3% over the medium term. The RBNZ has increased interest rates by a total of 50 basis points this year and has indicated further tightening measures due to persistently high inflation. While the latest data shows some movement towards the RBNZ's target, it remains substantially above the central bank's desired range.