Breaking: New Zealand Q1 CPI slides to 1.2% QoQ while driving down NZD/USD to 0.6175

New Zealand Q1 CPI slides to 1.2% QoQ while driving down NZD/USD to 0.6175

The quarterly print of New Zealand’s headline inflation, per the Consumer Price Index (CPI), released by the Statistics New Zealand is out for the first quarter (Q1) of 2023 and is as follows:

• New Zealand Q1 CPI 1.2% QoQ (expected 1.3%) 7.2% YoY (expected 7.1%)

About NZ CPI

With the Reserve Bank of New Zealand's (RBNZ) inflation target being around the midpoint of 2%, Statistics New Zealand’s quarterly Consumer Price Index (CPI) publication is of high significance. The trend in consumer prices tends to influence RBNZ’s interest rates decision, which in turn, heavily impacts the NZD valuation. Acceleration in inflation could lead to faster tightening of the rates by the RBNZ and vice-versa. Actual figures beating forecasts render NZD bullish.