Article by ForexTime
The New Zealand Dollar was the one of the biggest movers in the Asian session on Thursday, falling close to 100 pips against the US dollar after disappointing inflation data.
According to data from Statistics New Zealand, the consumer price index (CPI) rose 0.3 percent in the September 2014 quarter. This is the third consecutive quarterly rise of 0.3 percent.
“Higher housing-related prices were responsible for about three-quarters of the rise in the CPI this quarter. The rest of the basket was relatively subdued,” prices manager Chris Pike said.
Prices for housing and household utilities rose 1.0 percent, reflecting higher local authority rates (up 3.8 percent), housing rentals (up 0.6 percent), and newly built houses (up 1.1 percent). Local authorities set their rates annually, and these are mainly shown in the September quarter CPI.
Lower prices for household contents and services (down 1.3 percent) reflected falls for textiles, furniture, and whiteware. Communication also fell (down 1.4 percent), reflecting better-value telecommunication services (down 1.1 percent) and cheaper telecommunication equipment, mainly cellphone handsets (down 7.5 percent).
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Transport prices were up 0.1 percent, with higher petrol prices (up 1.0 percent) and international air fares (up 1.4 percent) countered by cars (down 1.0 percent) and warrants of fitness. Fewer cars now require a six-month warrant of fitness, which has been shown as a price fall in the CPI.
“Overall food prices were flat, but there was a relatively large fall for bread, with supermarkets discounting some of their own-brand bread to about $1.00,” Mr Pike said. Vegetable prices rose 10 percent in the quarter on the back of a mild winter – compared with a 20 percent rise in the September 2013 quarter.
The kiwi fell to as low as $0.7830 in the Asian session from a high of $0.7927.
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