Thursday, 26th January, 2017
This week brings the delayed release of Q4 CPI, one the first key pieces of NZ economic data in 2017. New Zealand’s inflation outlook has improved over recent months and we expect Thursday’s release to reflect this. We expect the CPI to register a 0.2% qoq increase, with annual inflation jumping to 1.1% (in line with the RBNZ’s forecast). While the quarterly lift remains soft, the sharp increase in the annual rate is driven in part by a particularly soft CPI result in Q4 2015 dropping out of the annual calculation.