New Zealand consumer prices rose 7.3% in the second quarter, keeping pressure on the central bank to continue steep interest rate hikes.
The statistics office announced that inflation was at a 32-year high. The only factor contributing to inflation was the increase in prices for housing construction and rentals.
Median estimates called for a rise in inflation to 7.1% from 6.9% in the first quarter. Inflation has risen worldwide during the coronavirus, mainly due to economic stimulus programs and increased government spending, global transport problems and the Russian invasion of Ukraine.
Central banks are aggressively raising interest rates to counter price rises, but there is a risk that economies could be pushed into recession.
New Zealand’s central bank last week raised interest rates by half a percentage point for the third straight session, to 2.5%.
This is the central bank’s sixth hike since last October, when it raised interest rates from a record low of 0.25%.
Source: Capital
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