It’s not often that the markets react to New Zealand’s producer price data (a shame, but true). But they did to this morning’s, at least initially. While all and sundry seemed braced for something of a pick-up in the Q3 Producer (Output) Price Index, it no doubt surprised many by jumping all of 2.4%. This lifted its annual inflation to 4.1%, from 0.8%. Input prices surged 2.2% in the quarter, for 3.3% y/y. So much for low inflation.
Read the full report: Economic Research
BNZ