Data is here:
Some market chatter now doing the rounds that the RBZ is going to respond more aggressively. While the next meeting is not until February 23 there is speculation mounting it’ll be a 50bp hike given the broad-based inflation result.
Stats NZ report:
- “Price increases were widespread with 10 out of 11 main groups in the CPI basket increasing in the year, with only the communications group decreasing,”
- Domestic, or non-tradable inflation, was 5.3 percent in the year to the December 2021 quarter.
- (Non-tradable inflation measures goods and services that do not face foreign competition. It shows how domestic demand and supply conditions are affecting consumer prices.)
NZD still showing little response: