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August Rate Cut 'as Close to a Done Deal as Can Be the Case' - Stephen Toplis
NEW ZEALAND, JUL 20 – Inflation rose to 2.7% driven by food, power, housing, and local government rate increases, with rent and rates contributing over 25% of the annual rise, Stats NZ reported.
- Stats NZ reported a 2.7% annual inflation rate in the June 2025 quarter, driven by rising food, power, and housing costs, pushing inflation to a 14-year high.
- Surging costs led by food, power, and housing, with export-driven food prices and butter prices up nearly 50 percent.
- The largest upward driver was electricity prices, which Nicola Growden said surged 4.9 percent, marking the biggest quarterly jump.
- Following the release, markets are now pricing a 75 percent chance of a 25 basis-point rate cut in August, as the New Zealand dollar dipped 0.3 percent to US$0.5941.
- Projections indicate the Reserve Bank of New Zealand expects to lower the official cash rate further if medium-term inflation pressures ease, while ASB senior economist Mark Smith forecasts inflation above 3% in the September quarter but temporary.
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RBNZ Q2 sectoral factor inflation model at 2.8% y/y
SYDNEY (Reuters) -The Reserve Bank of New Zealand (RBNZ) said on Monday its sectoral factor model of core inflation was 2.8% year-on-year in the second quarter, down from 2.9% in the prior quarter. The country’s official statistics agency earlier in the day released figures that showed annual inflation came in at 2.7% in the second quarter, its highest in a year, leading markets to narrow the odds on a rate cut next month given weakness in the b…
Inflation Numbers Expose Govt’s Economic Failure
While Christopher Luxon talks about growth at all costs, New Zealanders across the country are being forced to choose between heating their home or feeding their families, says Green Party Co-leader Chlöe Swarbrick.
·Wellington, New Zealand
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Coverage Details
Total News Sources15
Leaning Left3Leaning Right1Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
13%
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