Archive

New Zealand Private Labor Cost Index 4.1% y-o-y (consensus 4.2%) in Q3-23

- The New Zealand Private Labor Cost Index grew by 4.1% year-over-year in Q3-23, the slowest growth rate since Q3-22 and a tenth under expectations.
- Private salary growth slowed to 0.82% quarter-over-quarter in Q3-23.

New Zealand Unemployment Rate 3.9% (consensus 3.9%) in Q3-23

- New Zealand's unemployment rate increased to 3.9% in Q3-23, as expected, reaching its highest level since Q2-21.
- Employment contracted by 0.2% in the same quarter, indicating a sharp deterioration in the job market after recent strength.

New Zealand CPI Inflation 5.6% y-o-y (consensus 5.9%) in Q3-23

- New Zealand's CPI inflation recorded a year-on-year growth rate of 5.6% in Q3-23, the lowest since Q3-21, indicating a surprisingly steep moderation in price increases.
- The quarterly inflation rate of 1.8% is far above a target-consistent pace despite being 0.78pp under the one-year average.

Reserve Bank of New Zealand: Oct-23

• The Monetary Policy Committee unsurprisingly retained the Official Cash Rate at 5.50%, rooted in their commitment to moderate inflation and foster sustainable employment amidst changing global and domestic economic landscapes.
• Internationally, while global economic growth remains below the desired trend, especially in critical areas like China, core inflation's decline has been slower and inconsistent. Domestically, the New Zealand economy witnessed an unexpected surge in the June quarter's GDP growth but continues to experience a moderating demand growth trajectory.
• Risks to the New Zealand economy encompass potential resilience in domestic demand in the short term and a more protracted global growth decline in the medium term. The Committee remains vigilant of the varied impacts of high domestic interest rates on different sectors, noting emerging stress pockets but maintains confidence in achieving their dual mandates.