News | Business
21 Feb 2018 16:03
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • 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




    © 2018 NZN, NZCity


     Other Business News
     21 Feb: Fletcher Building shares hit 5-year low
     21 Feb: A2 shares jump 25pc on Fonterra deal
     21 Feb: Fairfax shedding 28 NZ papers
     21 Feb: Spark 1H profit falls as rejig costs hit
     21 Feb: GDT prices slip for first time this year
     20 Feb: KiwiRail earnings up despite Kaikoura woes
     20 Feb: Fonterra likely to hike milk payment: OMF
     Top Stories

    RUGBY RUGBY
    Seasoned Highlanders team named for opener More...


    BUSINESS BUSINESS
    Fletcher Building shares hit 5-year low More...



     Today's News

    Law and Order:
    Alfie Evans: UK parents lose legal battle to keep seriously ill toddler on life support 15:55

    Business:
    Fletcher Building shares hit 5-year low 15:35

    Entertainment:
    Chrissy Teigen will give birth to her second child in June 15:35

    Christchurch:
    CTV site transformed into 'peaceful place' 15:25

    Business:
    A2 shares jump 25pc on Fonterra deal 15:05

    Entertainment:
    Jordin Sparks held a "beautiful" baby shower for her family and friends on Saturday (17.02.18) 15:05

    Motoring:
    Number of South Island roads re-open 14:55

    Rugby League:
    ARLC reform vote adjourned to next month 14:55

    Business:
    Fairfax shedding 28 NZ papers 14:55

    Politics:
    CPTPP will add up to $4b to economy: MFAT 14:45


     News Search






    Power Search


    © 2018 New Zealand City Ltd