ANZ New Zealand Monthly Inflation Gauge fell 0.4% m/m in October

The ANZ New Zealand Monthly Inflation Gauge fell 0.4 percent month-on-month (up 2.9 percent year-on-year) in October, following a 0.6 percent month-on-month (2.5 percent year-on-year) rise in June. 

Key points

• 16 of the 36 categories lifted in the month, which is well above the average of 10 since the Gauge’s conception – a tentative signal that, just maybe, inflation is broadening. That said, most monthly gains were small.
• the October Gauge suggests inflationary pressures are at least tracking sideways heading into Q4, but it’s still early days.
• A bounce in accommodation services in November wouldn’t come as a surprise.
• There was only one area of significant weakness in the Gauge – the recently-volatile accommodation services component – and the number of components to lift in the month hit an 8-year high.