Inflation in New Zealand rose faster than economists expected in the second quarter, reaching a new 32-year high due to increasing housing, food, and fuel expenses.
Data released by the New Zealand Government on Monday showed that annual inflation had accelerated to 7.3 percent from 6.9 percent in the first quarter. Consumer prices rose 1.7 percent from three months ago, beating the median expectation of 1.5 percent.
That’s the highest yearly growth rate since June 1990, and it was far higher than the predicted 7.1 percent.
The Reserve Bank of New Zealand (RBNZ) hiked the official cash rate by 50 basis points last week to 2.5 percent, the highest level since March 2016. It stated that steady tightening was necessary to protect price stability and encourage maximum sustainable employment.
