By Lucy Craymer
WELLINGTON, Oct 22 (Reuters) – New Zealand’s annual inflation slowed in the third quarter, coming in at 3.7% – below analysts’ forecasts – but remained above the top end of the central bank’s target range, official data showed on Thursday.
The consumer price index (CPI) rose 0.7% in the third quarter from the second, Statistics New Zealand said.
Economists polled by Reuters had expected a 3.8% annual increase and 0.8% quarterly rise.
The Reserve Bank of New Zealand targets annual inflation between 1% and 3% over the medium term.
The New Zealand dollar dipped to $0.5692 after the data came in below forecasts.
Statistics New Zealand said the largest contributor to inflation was petrol prices, even though prices had eased since the June quarter. It noted that the cost of building houses had also increased.
Inflation has become a key battleground ahead of the close fought November 7 general election, as voters – fed up with the sluggish economy and historically high inflation – look for relief and political parties offer various policy solutions.
The data, which came in lower than the central bank forecast of 3.9% is the last top-tier data release ahead of the Reserve Bank of New Zealand’s monetary policy review next week.
The central bank has raised the cash rate twice this year to 2.75% as it tries to bring inflation back to the midpoint of its 1% to 3% target range.
(Reporting by Lucy Craymer in Wellington; Editing by Renju Jose)
