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Recent releases

Pressures evident on rents in Auckland and Christchurch Rental inflation has edged up in the first quarter of 2014, reaching 4.7%pa in March. The pick-up has been largely driven by faster rental growth across much of Auckland, where rental inflation has hit its fastest rate in 12 months. Read more

Inflation pressures track along as expected The consumers price index lifted by 0.3% in the March quarter and was up by 1.5% from a year earlier. This result was broadly in line with our forecasts, as prices for housing and household utilities continue to edge higher. Non-tradable inflation is expected to track upwards over the year, but tradable inflation is still being kept under wraps by the high New Zealand dollar. Read more

Commentary

No surprises in rising prices There was a 0.3% lift in the consumers’ price index during the March quarter with tradable prices sinking 0.7% and non-tradable prices rising by 1.1% over the period.
Why do we study? Education is often seen as an investment, but do students ever crunch the numbers on perhaps one of the biggest investments in their life? Some courses of study never break even, yet their popularity indicates that study means more to people than a ribbon wrapped ticket to higher salaries – education is also a consumption good. Read more.

March 2014 monthly Tensions surrounding Ukraine sovereignty escalated this month with Russia annexing the Crimea and the G7 suspending Russia from the G8 council because of the invasion. None of this bodes well for China who is in the process of rebalancing towards consumption lead growth. Although New Zealand has little scope of influence in these matters, our recent good fortune in export markets will be affected by them. Read more.

Latest Forecasts

Scenes to relish for a civilised society

After being dressed in sackcloth for much of the last five years, the New Zealand economy is getting its glad rags on and is set to head out on the town. GDP growth averaging 4.2%pa over the next two years is ample cause for a celebration – even more so given the teetotalling growth of just 0.9%pa on average between March 2008 and March 2013.