Inflation in New Zealand improved in the first quarter of the year, exceeding expectations as tobacco prices and the housing and construction market rose. According to data from the National Bureau of Statistics, the consumer price index rose by 0.5% in the period specified, while annual inflation rose by 1.1%. The Bank's expectations were 0.6% and 1.1%, respectively.
This comes as the Reserve Bank of New Zealand aims to stabilize inflation within the range of 1-3%. In the medium term. Tobacco prices were the main driver of inflation growth in the first quarter, up 10.7 percent year-on-year. While house prices rose by 3.1%, building prices by 4.7%, food by 0.6%, and household energy such as electricity by 2.7%.
