New Zealand Q2 CPI 0.4% q/q (expected 0.5%) & 3.3% y/y (expected 3.4%)

New Zealand inflation data for the April to June quarter of 2020, lower than expected:

The Reserve Bank of New Zealand will be a little happier with this data, but inflation in NZ is still above target. The target range for consumer inflation is between 1 and 3%.

Domestic inflation continues to stay stubbornly high:

• non-tradables +0.9% q/q and +5.4% y/y (prior 5.8%)
• Non-tradeable inflation measures final goods and services that do not face foreign competition and is an indicator of domestic demand and supply conditions. However, the inputs of these goods and services can be influenced by foreign competition.

Tradeable inflation 0.3% y/y (prior 1.6%

• Tradeable inflation measures final goods and services that are influenced by foreign markets.

This article was written by Eamonn Sheridan at www.forexlive.com.