News | Business
14 Dec 2017 7:38
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Days of Xmas
  • News
  • Sport
  • Weather
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Higher than expected inflation lifts kiwi

    The New Zealand dollar gained on Thursday after consumer prices rose at their fastest annual pace in five-and-a-half years in the first quarter of 2017.

    20 April 2017

    The New Zealand dollar gained on Thursday after consumer prices rose at their fastest annual pace in five-and-a-half years in the first quarter of 2017.

    This marked the first time inflation has hit the mid-point of the central bank's 1 per cent-to-3 per cent target range since September 2011.

    The kiwi was trading at US70.37c as at 5pm in Wellington versus US69.99c as at 8am but was largely unchanged from 70.44c Wednesday.

    "It was a decent surprise and it was partly due to one-offs but some of the details came in on the stronger side too," said ANZ Bank New Zealand senior economist Phil Borkin.

    "The overall message is that core inflation is increasing," although perhaps more gradually than the headline number would suggest, he said.

    The consumers price index rose 1 per cent in the three months to March 31 for an annual pace of 2.2 per cent, as rising fuel prices, a tax on cigarettes and tobacco and the hot housing market stoked inflation.

    Excluding gasoline and cigarettes and tobacco, the CPI showed a 1.5 per cent increase, Stats NZ said.

    Still, Mr Borkin said the Reserve Bank will likely remain "cautious and watchful" given the one-off factors.

    He noted that the fact the Reserve Bank's so-called "sectoral factor model", which estimates the common component of inflation in the CPI basket, the tradable basket, and the non-tradable basket, remained steady at 1.5 per cent versus the prior quarter "shows that a lot of those surprises and movements were due to idiosyncratic factors rather than being a broad theme".

    The kiwi traded at 54.93 British pence versus 54.90 pence Wednesday. The kiwi was at A93.70c from 93.59c and fell to 4.8439 Chinese yuan from 4.8470 yuan. It was at 65.58 euro cents from 65.69 cents and at 76.65 yen from 76.49 yen.


    NZN




    © 2017 NZN, NZCity


     Other Business News
     13 Dec: Jerusalem move is a big favour from Donald Trump. It won't be cheap to pay back
     13 Dec: Wellington-Queenstown flight route is back
     13 Dec: Big fine for commercial fishing in reserve
     13 Dec: Westpac to close five branches
     13 Dec: NZ house sales rise 17.8pc in November
     13 Dec: NZD touches four-week high overnight
     13 Dec: KiwiSaver in divorce, death and disaster
     Top Stories

    RUGBY RUGBY
    Australia bidding for 2027 Rugby World Cup More...


    BUSINESS BUSINESS
    Jerusalem move is a big favour from Donald Trump. It won't be cheap to pay back More...



     Today's News

    Entertainment:
    Khloé Kardashian is planning to give birth in Los Angeles 7:30

    Law and Order:
    Biosecurity star sniffs out retirement 7:27

    Motoring:
    Car crash closes SH1 at Warkworth 7:17

    Politics:
    TOP to fight next election, minus Morgan 7:07

    Entertainment:
    Gwen Stefani and Blake Shelton's life is like a "musical" 7:00

    Entertainment:
    Kris Jenner has splashed out more than $9.9 million on a new home 6:30

    Accident and Emergency:
    Fire safety tips for festive season 6:27

    Entertainment:
    Dwayne ‘The Rock’ Johnson is set to become a father for the third time 6:00

    International:
    Chris Froome posted abnormal drug test result during Vuelta de Espana 22:17

    Soccer:
    World Cup carrot dangling for Wilkinson 21:57


     News Search






    Power Search


    © 2017 New Zealand City Ltd