NZ inflation rises to highest in a decade; dollar jumps

CPI SA

16/07/2021 24:02

WELLINGTON, July 16 (Reuters) - New Zealand's consumer price
index (CPI) beat expectations in the second quarter soaring to
its highest in about a decade, sending the dollar higher as it
reinforced the market view that the central bank may tighten
monetary policy as early as August. 
    CPI rose 1.3% in the quarter ending June from 0.8% in the
first quarter, according to data released by Statistics New
Zealand on Friday, taking annual inflation to 3.3%, the highest 
it has been in nearly a decade riven by rising prices for new
housing and petrol.
    Economists polled by Reuters had forecast CPI to rise 0.8%
for the quarter, with an annual rise of 2.8%.
    The inflation figures easily outpaced the Reserve Bank of
New Zealand's forecast in May of a 0.6% rise in quarterly CPI
and an annual rate of 2.6%, and firmed up views that a hiking
cycle may start soon.
    The New Zealand Dollar  NZD=D4  jumped 0.3% on the inflation
figures touching $0.7003.
    The RBNZ ceased its pandemic-induced quantitative easing
programme earlier this week, which markets took as a sign that a
rate hike was now imminent this year.  urn:newsml:reuters.com:*:nL4N2OP0YC
    Top New Zealand banks have moved forward their forecasts for
an interest rate hike to August. 

 (Reporting by Praveen Menon; Editing by Stephen Coates)
 ((praveen.menon@thomsonreuters.com; +6448028163; Reuters
Messaging: praveen.menon.thomsonreuters.com@reuters.net;
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