NZD/USD is jumping after a huge 5.9% non tradable inflation number in the Q4 data

<p>The headline inflation number for Q4 2023 is a welcome sight for the Reserve Bank of New Zealand:</p><ul><li><a href="" target="_blank" rel="follow" data-article-link="true">New Zealand Q4 CPI 0.5% q/q (expected 0.5%) and 4.7% y/y (expected 4.7%)</a></li></ul><p>But, as they say, the devil is in the details:'Non-tradeable' inflation has come in at a whopping 5.9% y/y</p><ul><li>+1.1% q/q, way above expected at 0.8%</li></ul><p>The RBNZ has basically zero control over tradeable inflation (more on this in the details at that post linked above). But non-tradeable inflation is something the Bank can address, using its (basically only) tool of monetary policy. High non-tradeable inflation argues for continued tight monetary policy.</p><p>NZD/USD popped higher:</p>

This article was written by Eamonn Sheridan at

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