Economy

New Zealand Dollar Gains on CPI Beat, But Excitement Fizzles

Actual rentals for housing rose 0.6 per cent in the quarter and were up 2.2 per cent on the year.

Despite annual growth in the cost of new housing falling from June, above-5% growth in nationwide prices kept the upward pressure heaped on, along with food price rises. Household energy, which includes electricity, gas and solid fuels rose a quarterly 0.3 per cent and an annual 1.7 per cent. Meanwhile, dwelling insurance was up a whopping 12% annually, following a 6.1% quarterly rise in September.

The Reserve Bank is mandated with keeping annual inflation between 1-and-3 per cent, with a focus on the mid-point. Prices for second-hand motor cars fell 0.9 percent this quarter and increased 1.8 percent in the year.

The September reading may also be a bitter-sweet farewell for just-retired governor Graeme Wheeler. The RBNZ said in August that it expects price growth to weaken in the fourth quarter and to fall below an annual rate of 1% in early 2018, which combined with below-forecast economic growth, suggests no change in policy for some time to come. The annual increase of 2.6 percent in construction of new dwellings (excluding land) is the lowest annual increase since September 2010, before the Canterbury earthquakes.

Tonight's GlobalDairyTrade auction will be closely watched after the last auction two weeks ago saw whole milk powder fall 2.7 percent and the GDT price index drop 2.4 percent. It was the largest increase in Wellington rents since December 2008.

Figures this morning are expected to show inflation was 0.4 percent in the third quarter, after a flat second quarter, for an annual pace of 1.8 percent.

The CPI grew 1.9 percent on an annual basis, according to figures from Statistics New Zealand, beating analysts' expectations for a 1.8 percent rise.

Local authority rates rose 3.5 percent this quarter and 3.7 percent in the year. Transport prices were up 2.0%, influenced by higher prices for petrol - up 4.5% over the year (although petrol prices fell 1.7% during the September quarter).

Communication prices decreased 5.3 percent, with telecommunications services down 4.5 percent and equipment down 22 percent.

Global air fares fell 5.5 percent this quarter and 2.7 percent in the year to September.

The tradables CPI, which includes goods and services that compete with worldwide rivals, rose 0.2 per cent in the quarter and was up 1 per cent for the year.



Like this

Latest


17 October 2017
New York Bomber Faces Life in Prison
Police defused a second device in Chelsea and found five additional pipe bombs in Rahimi's hometown of Elizabeth, New Jersey. During the trial, a prosecutor called it a "miracle" that nobody was killed on the chaotic night of September 17, 2016.

17 October 2017
Automatic Data Procs (ADP) Tick 0.33% For The Week
Barclays Capital initiated Automatic Data Processing (NASDAQ:ADP) on Tuesday, December 20 with "Overweight" rating. Murphy Mgmt owns 4,624 shares. 507 were reported by Northwest Investment Counselors Limited Liability Corporation.

17 October 2017
Revenue Approximations Analysis: Under Armour, Inc. (UAA), Schlumberger Limited (SLB)
The Firm is an integrated energy firm engaged in electric power production and retail electric distribution operations. Pioneer Investment Management Inc. lifted its stake in shares of Schlumberger N.V.by 52.7% in the 1st quarter.

17 October 2017
GM workers in Canada end strike at Equinox factory
If GM had done so, it would have been harder to shift Equinox production to Mexico, as Bloomberg's Kristine Owram reported . Workers have been on strike since September 17 at the plant, which GM recently spent C$800 million on to retool.

17 October 2017
Shin Megami Tensei's Jack Bros. Get Their Own Free Side-Scrolling Platformer
A few caveats: the game is only available for Windows, text is written in Japanese, and it's only available until December 24. If you want to play Synchronicity Prologue , it's now only available for PC, but luckily a shoe could run it.

17 October 2017
Crystal Palace in wonderland after shock win against Chelsea
Finally, Crystal Palace are up and running in the 2017/18 Premier League . This was very much two points dropped for the German's team.

17 October 2017
Alex Deaton sentenced in Kansas
Deaton was arrested after leading law enforcement on a high-speed chase that ended in a fiery crash in Ellsworth County. In July, Deaton pleaded guilty to shooting 19-year-old Riley Juel in a Pratt Kwik Shop while running from police.

17 October 2017
UK House Prices Rise 1.1% In October - Rightmove
Properties in the south of the country proved more hard to sell, with sales agreed down 7.9% compared with 3% in the north. Chris Chapman, managing director at Andrews Estate Agents, agrees that the key is getting the price right.

17 October 2017
Ankara to close air space to northern Iraq, extend state of emergency
Following the Cabinet's meeting, the government submitted to the Turkish parliament a motion, seeking extension of emergency rule. Moreover, it was recommended to completely close Turkey's airspace for flights from the Kurdish Autonomy of Iraq.

17 October 2017
The Case for and Against Sirius XM Holdings Inc. (SIRI)
ILLEGAL ACTIVITY NOTICE: This piece of content was published by StockNewsTimes and is the sole property of of StockNewsTimes. Arrowstreet Capital Limited Partnership raised its holdings in shares of Sirius XM Holdings by 119.2% in the 2nd quarter.



Recommended