New Zealand’s Q1 CPI will be released next Tuesday.
The RBNZ upgraded their year-ended headline inflation forecast to +3% from +2.8% previously. This implies a quarterly outcome of +0.8% q/q.
The release of monthly price data for March allowed Q1 inflation nowcasts to be firmed up. See here for our wrap of the monthly price indicators.
While sharply higher fuel prices in the month of March will support headline inflation in Q1, the largest impact will show up in Q2 inflation if high fuel prices persist.
