NZ inflation gauge: All smoke and no fire – ANZ

Analysts at ANZ offer key insights on New Zealand’s inflation gauge, which the bank publishes on a monthly basis.

Summary:

Prices from the Gauge rose 0.5% in January1 and are up 2.2% y/y.

The largest contribution came from higher tobacco and cigarette prices, as has become typical in January.

The underlying gauge was flat.

Rents have been leveling off, which is somewhat puzzling given tightening housing supply.