New Zealand Inflation Cools to 0.5% in Q2, Below Forecast

New Zealand’s consumer prices rose 0.5% in the second quarter compared with the prior three months, undershooting economists’ median forecast of a 0.6% gain and slowing from the 0.9% increase recorded in the first quarter. On an annual basis, inflation ticked up to 2.7% from 2.5% but remained just below the 2.8% consensus estimate. Within the headline figure, tradable prices—those influenced by international factors—rose 0.3% quarter-on-quarter, while non-tradable prices, which better reflect domestic cost pressures, climbed 0.7%. Both measures eased from the previous quarter’s pace. The softer-than-expected print keeps overall inflation within the Reserve Bank of New Zealand’s 1%-to-3% target band and may reinforce expectations that the central bank can keep the official cash rate unchanged after an aggressive tightening cycle aimed at curbing price growth.