By Lucy Craymer
WELLINGTON, July 21 (Reuters) – New Zealand’s annual inflation accelerated in the second quarter, coming in at 4.1% – above analysts’ forecasts – and remained above the top end of the central bank’s target range, official data showed on Tuesday.
The consumer price index (CPI) rose 1.5% in the second quarter from the previous quarter, Statistics New Zealand said.
Economists polled by Reuters had expected a 1.4% quarterly rise and a 4.0% annual increase.
The Reserve Bank of New Zealand (RBNZ) targets annual inflation between 1% and 3% over the medium term.
Statistics New Zealand said the largest contributor to inflation was petrol, which was up 27.5%, while diesel prices were up 71.1%.
It added that if petrol and diesel prices had not changed, the CPI would have risen 2.9% in the 12 months to June 30.
The RBNZ earlier this month forecast annual inflation at 3.9% for the quarter, before easing to 3.3% in the third quarter as the boost from oil price rises linked to the Middle East war fades from the headline rate.
The central bank raised the cash rate for the first time in three years to 2.50% and signalled further tightening ahead, saying it must do more to bring inflation back to target as economy rebuilds.
(Reporting by Lucy Craymer;)
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