New Zealand CPI accelerated, but RBNZ core CPI slowed

New Zealand CPI rose accelerated to 0.8% qoq in Q1, up from Q4’s 0.5% qoq, well above expectation of 0.3% qoq. Annual inflation rate rose to 2.5% yoy, highest since 2011. Impact of coronavirus pandemic was not much reflected in the data yet as lockdown measures started on March 25. Separately released, RBNZ’s own core CPI measures slowed to 1.7% yoy in Q1, down from 1.8% yoy.

Separately, New Zealand Prime Minister Jacinda Ardern announced today that the country will “move out of Alert Level 4 lockdown at 11.59 p.m. on Monday April 27, one week from today”. Afterwards, “we will then hold in Alert Level 3 for two weeks, before reviewing how we are tracking again, and making further decisions at Cabinet on the 11th of May.”